HomeMy WebLinkAbout931383.tiff (1) Those in support of the application; ettg‘in
(2) Those opposed to the application.
d. Applicant's rebuttal testimony.
e. After completion of testimony by the
County staff,applicant,and citizens,the COLORADO
Chairman may close the public hearing
and open the proceedings to discussion
and questions by the Board.At the discre-
tion of the Chairman, additional testi-
mony may be taken, must not be repeti- BOARD OF
tious, and should serve to clarify points COUNTY
raised in the earlier testimony. Although
a case may be continued to a subsequent COMMISSIONERS
meeting for further action, the Board of PUBLIC
County Commissioners normally makes
a decision on an application the same day HEARING
as the public hearing. PROCEDURES
FOR
LAND-USE
CASES
42, Prepared by:
V-4Z
w Weld County
Department of Planning Services
tda COLORADO
EXHIBIT
E
� v
BOARD OF COUNTY COnVIlVIISSIONERS a. All testimony is to be given at the C 4'4'
PUBLIC HEARING PROCEDURES microphone. rZ
b. When you first speak,
COMPOSITION OF THE BOARD NOTIFICATION OF HEARINGS state
OF COUNTY COMMISSIONERS your full name and complete address.
please
Notice of Board of County Commission- c. If you with to speak again, you must
The Board of County Commissioners ers'public hearings is made in the public request permission from the Chairman.
consists of five elected members.Three of notice section in the newspaper desig-
the members are elected from separate nated by the Board of County Commis d. All testimony should be relevant,and
geographic districts; the other two com- sinners for publication of legal notices. should not be repetitious.
missioners are elected from the County at Property being considered for a land-
large. The Board elects its Chairman use application is posted with a sign at e. Clapping, booing, and audible con-
annually at its first meeting in January. least ten days prior to the meeting. Prop- versations from the audience are not ap-
The Chairman presides over meetings of erty owners within 500 feet of the prop- propriate.
the Board. erty under consideration are also notified
by first class mail.Hearings are held in the Finally: If you have any objections to any
BOARD OF First Floor hearing room of the Weld
COUNTY COMMISSIONERS County Centennial Center located at 915 testimony, you must request permission
POWERS AND DUTIES 10th Street, Greeley, Colorado.
to readdress the Board.
ORDER OF TESTIMONY
The Board of County Commissioners is AGENDAS
the governing body of the County. On Testimony on land-use applications will
most land-use raw the Board of County Agendas for the Board of County Com- be received in the following order:
Commissioners will hold a public hearing missioners' meetings are available upon
to consider the application and to take request. A list of the scheduled hearings a.The planning staff will present the rec-
final action. In making a decision on the is included on the Consent Agenda and is ommendation of the Weld County Plan
application, the Board will consider the available in the Clerk to the Board's of- ping Commission.
recommendation of the Planning Com- five.
mission. The public hearing is also con-
b. The applicant will make a presentation
ducted to solicit public input and to gather GUIDELINES FOR SPEAKING in support of the application.
facts about the relevant issues.
The Chairman will review the guidelines c. Citizens may speak in the following
for speaking before testimony is taken on order:
any application.
PLANNED UNIT DEVELOPMENT PLAN
CRITERIA FOR REVIEW IN THE WELD COUNTY ZONING ORDINANCE
1. That the proposal is consistent with the Weld County Comprehensive Plan.
2. That the Planned Unit Development Plan conforms to the PUD District in which
it is proposed to be located.
3. That the USES, BUILDINGS, and STRUCTURES which would be permitted shall be
compatible with the existing or future DEVELOPMENT of the surrounding area as
permitted by the existing zoning, and with the future DEVELOPMENT as projected
by the COMPREHENSIVE PLAN or MASTER PLANS of affected municipalities.
4. That there has been conformance with the Performance Standards outlined in
Section 35.3 of the Weld County Zoning Ordinance.
5. That there will be compliance with the Weld County Zoning Ordinance, Section
50, Overlay Districts if the proposal is located within any Overlay District
area identified by maps officially adopted by Weld County.
6. That there has been compliance with the submittal requirements of the Planned
Unit Development Plan, and that the Planned Unit Development Plat and the
supporting documents satisfy the legitimate concerns of the Board.
9;12 49
EXHIBIT
PRESENTATION OUTLINE
The Villa at Greeley, Inc. , Applicant
Fort Junction PUD First Filing/Final Plan
December 8, 1993
I . John Coppom, Villa Administrator
A. Introductions
B. What Prerelease facility is
-Enabling Legislation and Department of Corrections RFP
outlining expectations for correctional rehabilitation
facility; 386 beds, offender classification, purpose of
program.
C. Where facility is
-I-25 M.U.D. ; in existing P.U.D. district allowing for C-
1--C-4 and I-1 use; in P.U.D. overlay district.
D. Location; adjacent land uses .
-Why this location
-compatibility with adjacent land uses
-infrastructure
-accessibility for transportation
-good for hiring of staff
-in a mixed use development area
-Economic Development - 110 professional jobs,
taxpaying business , etc .
II . Loren Bley, Architect
-Site plan
-architectural compatibility and integrity
-landscaping
-fencing, buffering
-security of building; analogous to a jail
III . Vern Nelson, Engineer
-drainage
-minerals
-traffic
-P.U.D. District background
IV. Michael Brand, Villa Corrections Director
-Compliance with Comprehensive Plan and Ordinance
-Rehabilitative Program information
-Compatibility, safety, land value information and
examples
- Witness :
Libby Glass--W.W. Reynolds & CO. , developer
of East Prospect Business Park, adjacent to
9;1,7, 19
Larimer County Detention Center.
-compatibility, safety, land values,
development of industrial parks
surrounding Larimer County Detention
Center and Boulder County Jail .
V. Ron Hiatt
-Del Camino landowner and businessman. Owns
Truck Wash and Dairy Queen.
IV. Ed Kahn
-adjacent landowner; sold land to church
VII . Dr. Spence Anneberg, Psychiatrist
-testimony regarding "Facts vs . Fears" and that the
prerelease center is a "Rehabilitation Center" .
VIII . Ann Garrison (not until 3 : 00 p.m. )
-research re. : land values, crime rates,
compatibility issues .
IX. John Coppom - Wrap Up
-no technical concerns with application re.
architectural/engineering, site plan, referrals, etc .
-significant evidence was presented indicating no
negative impacts on community safety, development/land
values of adjacent properties . (Thirty specific
examples )
-lack of evidence presented to the contrary.
-meet all requirements of comprehensive plan and County
Zoning ordinance. Proper, appropriate„ and permitted
use in previously established P .U.D. District .
Opposition Presentation
Public Comment
X. Arthur Roy, Attorney for applicant
-Compliance with comprehensive plan and ordinance
-permitted -and compatible use in I-25 M.U.D. and in P.U.D.
District
-Rebuttal of opposition ' s technical arguments
XI . John Coppom - Final Statements
To: Weld County Board of Commissioners
From: Michael Brand, Corrections Director
The Villa at Greeley, Inc.
Date: November 25, 1993
RE: Ft. Junction PUD First Filing/Final Plan
The purpose of this letter is to succinctly outline The Villa
at Greeley, Inc . ' s full compliance with all applicable requirements
and conditions established in the Weld County Comprehensive Plan
and by Weld County Zoning Ordinance.
Section 28 . 14 . 1 . 6 of the Weld County Zoning Ordinance states
that "The Board of County Commissioners shall approve the request
for the Planned Unit Development Plan unless it finds that the
applicant has not met one or more of the applicable requirements or
conditions of section 28 . 9 , 28 . 12 . 7 . and 28 . 13 . . " The zoning
ordinance goes on to state that the applicant has the burden of
proof to show that the above standards and conditions are met.
Compliance with all 28 . 9 requirements are outlined in The Villa' s
Application Document, section titled "P.U.D. Procedural Guide
Application Requirements" , as outlined in zoning ordinance and
Weld County Department of Planning Services ' expectations .
Supporting attachments follow. All required architectural and
engineers ' maps and drawings required under Section 28 . 11 are
complete, and are submitted as part of the application. There are
no utility, infrastructure, or environmental concerns related to
this application.
9f .M= 9
In addition to the information included in the PUD Development
Plan Application, the following further demonstrates the
applicant ' s compliance with requirements as outlined under section
28 . 13 of the Weld County Zoning Regulations :
28 . 13 . 1 . 1 "That the proposal is consistent with the Weld
County Comprehensive Plan. "
In regard to the I-25 mixed use development area, the Weld
County Comprehensive Plan states that "The district allows
residential, commercial, industrial, and institutional uses to
occur after they have been reviewed and approved according to the
P. U.D. application process. The P. U.D. process is an approach
which promotes freedom, flexibility, and creativity.
In the absence of definition of the term "institutional" as
permitted use in this M.U.D. area, a dictionary definition is
relied upon. According to Random House College Dictionary,
institution is defined as "3 . a place of confinement, as a prison,
mental hospital, etc. " Webster ' s defines institutionalism as "2 .
public institutional care of defective, delinquent, or dependent
persons . " Webster ' s defines delinquent as " 1 . offending by
violation of duty or law. " The applicant asserts that the proposed
land usage, a preparole release facility, is defined as an
institution, and is therefore an allowable use in the I-25 Mixed
Use Development Area, as described in the Weld County Comprehensive
Plan.
Further compatibility with the Comprehensive Plan is
demonstrated in that The Villa' s Planned Unit Development District,
allowing for all levels of commercial usages, is within an
established P.U.D. Overlay District. Weld County Zoning Ordinance
54 . 1 and 54 . 5 are attached. The Ordinance describes the greater
flexibility of land uses allowed in an Overlay District,
specifically designed for the I-25 Mixed Use Development Area.
28 . 13 . 1 . 2 "That the Planned Unit Development Plan conforms to
the local PUD District in which it is proposed to be located. "
The existing PUD district is current and approved for
commercial/industrial land use as follows :
I-1, 10 acres, 215 , 000 square feet.
C-1 through C-4, 22 acres, 470, 000 square feet .
The approved Ft. Junction PUD District, then, allows for all
levels of Commercial development, as well as light Industrial . The
applicant has submitted a PUD plan for 123, 000 square feet on 22 +
acres within the District.
The Villa asserts that its proposed land usage in Case Number
S-344 meets a commercial definition as described in Weld County
Zoning Ordinance. Although "correctional" or "prerelease"
facilities are not specifically named in ordinance, the applicant,
as have many previous applicants, relies on Weld County Ordinance
5 . 10 "All Uses Allowed by Right, Temporary Uses, and Uses by
Special Review listed in this Ordinance are representative and are
not all inclusive. "
Additionally, Ordinance 33 . 4 . 1 . does state: "Intent of the C-3
District . To establish and preserve areas for activities which
provide goods or services for the benefit of the general public or
which require large amounts of space or high traffic volumes for
921219
generating business. "
That a preparole facility requires large amounts of space is
clear in that the building is relatively large, and adequate
spatial and landscape buffering is desirable, as shown in the PUD
Plan Application. That the land usage provides services for the
benefit of the general public is clear, and is best described in
the enabling legislation, co-sponsored by local legislators Senator
Norton and Representative Jerke. This legislation concludes with
the statement "The General Assembly hereby finds, determines, and
declares that this act is necessary for the immediate preservation
of the public peace, health and safety. "
There is a Use Allowed By Right in a C-2 District (and then,
C-3 District) for "Hospitals, nursing homes, and mental or physical
rehabilitation centers " (Ordinance 33 . 3 . 2 . 11 ) . Hospital is defined
in ordinance as "Any institution receiving inpatients and
rendering medical, surgical, psychiatric, or obstetrical care for
humans to include general hospitals and specialized institutions. "
The applicant is not asserting that the prerelease facility is
a hospital in the classic sense. However, it is clear that the
proposed facility is a specialized institution that will render
medical and psychiatric services in its normal course of
operations . As required by the state, nursing staff will be on
duty on a daily basis, and a physician clinic will be conducted
three times per week. Psychiatric services will also be provided,
as necessary. -
The applicant, however, does assert that the prerelease center
is a rehabilitation facility, as allowed by Ordinance. In the
9&.`:49
absence of a specific definition of "Rehabilitation" being
contained in the Weld County Zoning Ordinance, the term is assigned
its ordinary, contemporary meaning, per Ordinance 5 . 9 .
Rehabilitation is defined by Webster ' s as : " 1 . to restore or
bring to a state of health or useful and purposeful activity, as
through training or therapy. " As previously described, the
prerelease center ' s operational and programmatic elements are
rehabilitative by definition and content . Beyond medical and
psychiatric services being provided, the program elements
encompassing six hours per day, with two Curriculum Directors and
twenty-four (24 ) Instructors as staff, are clearly rehabilitative
in nature.
The major purpose and intent of the prerelease center is to
provide rehabilitative programmatic elements directed toward the
smooth and safe transition of incarcerated individuals to
supervised release within their own communities .
Program components such as Chemical Dependency, Relapse
Prevention, Education, Cognitive Restructuring, Interpersonal
Skills, Family Relationships, Health and Wellness, Anger and Stress
Management, Domestic Violence, etc . clearly define the operations
of this prerelease center as a "Rehabilitation Center" as allowed
by Weld County Zoning Ordinance in a C-2 or C-3 District .
Every Correctional institution should have a rehabilitative
purpose. Rehabilitative training is the primary purpose of the
Prerelease Center, as defined by the legislature, the Department of
Corrections, and the extensive program elements that comprise the
Prerelease Center ' s curriculum.
9:12 19
54 Planned Unit Development Overlay District
54.1 Finding of Fact. There are unincorporated areas within
Weld County with unique features, such as availability
of urban-type services and facilities which may be
suitable for mixed land- uses, provided that adverse
impacts of different land-uses are minimized. It is
recognized that in certain circumstances it may be
desirable to provide a greater range or mixture of USES
in an area than would be permitted under the standard
zoning system. It is further recognized that the
Planned Unit Development procedure permits a greater
range of flexibility than the standard zoning system
which does not always balance the capacity of a site
with compatibility to the neighborhood.
54. 5 Establishment of the Planned Unit Development Overlay
District. There is hereby established in Weld County,
Colorado, a Planned Unit Development Overlay District.
The Planned Unit Development Overlay District includes
all of the unincorporated area of Weld County known as
the I-25 Mixed-use Development Area and Activity
Centers . A map of the I-25 Mixed-Use Development Area
and Activity Center is shown in Figure 1 of the Weld
County Zoning Ordinance. . . .
•
r)a
THE VILLA AT GREELEY, INC. , APPLICANT
Case 5-344
Fort Junction P.U.D. First Filing/Final Plan
SUMMARY
EVIDENCE AND TESTIMONY
REGARDING THE EFFECTS OF CORRECTIONAL FACILITIES ON:
A) Compatibility with adjacent land uses
B) Future development of land usage on adjacent properties
C) Land values of adjacent properties
D) Community safety
**********************************************************_*******
Number One: Police Chief John Michaels from Windsor contacted
four communities in Texas with preparole facilities,
and spoke with each city ' s police chief . The
preparole facilities had been in operation for three
to five years , and up to 15 , 000 prisoners had been
cycled through the facilities . Chief Michaels was
informed by each of the other chiefs that there had
been no escapes from any of these facilities .
Further, Chief Michaels was informed that none of
the communities had any increase in crime, had no
concerns or problems with visitors of the inmates,
nor any other problems associated with the
prerelease facilities .
Number Two: UNC Professor Ann J. Garrison - research found that
property values rose faster in cities with prisons
than in cities without prisons . Research involving
fourteen communities showed that property values and
crime rates were not adversely affected by the
presence of correctional institutions . Data from
specific regions in five different states was cited,
showing that correctional facilities have no
negative impact on population growth or growth of
the employment base.
Number Three: In Florence, the Federal Government just completed
a two thousand seven hundred ( 2700) bed
correctional complex. There have been no community
safety issues . Compatibility is demonstrated by a
significant amount of commercial development
occurring immediately adjacent to the complex. Land
9Z1219 39
values have increased in the area, resultant from
projects such as Bear Paw, which is a new
development for a planned residential and golf
course community. Bear Paw is located one-half
( 1/2 ) mile North of the federal correctional
complex.
Number Four: The commissioners have had evidence presented to
them in a letter from Mr. Frank Canepa that the
number of drunk driving and drug-related arrests
have risen considerably since the opening of the
Limon correctional facility, and the resultant
visitor traffic . In speaking with Limon Police
Chief James Trahern on July 15, 1993, he stated
that, in fact, his agency has not made a single
drunk driving or drug-related arrest on any
correctional facility visitor. He went on to say
that visitors have not constituted any community
safety concerns .
Number Five: Howard Anderson, the mayor pro-temp of Ordway,
Colorado was contacted on July 27 , 1993, regarding
the compatibility and other issues of a
correctional facility being located in the
community. He stated that, since there is a forty-
five (45 ) minute response time for staff, many good
people ( staff ) are moving into the town, and are
active in civic affairs . Mr. Anderson stated that
the offenders do a lot of community service work
which benefits Ordway, and that land values have
not been adversely affected. A quote was "Citizens
don ' t hardly know the prison is there. "
Number Six: The Adams County Detention Facility located in
Brighton is a 288, 000 square foot complex built in
1985, which serves an average daily population of
550 inmates . They book in approximately 13, 000
unclassified inmates each year, who have been
arrested for every type of crime from misdemeanors
and traffic offenses to the most serious and
violent crimes .
An elementary school is located one block from this
detention facility. Across the street is a
shopping center, an office building complex, and a
senior citizen alternative care facility. There
have been no safety or compatibility concerns in
regard to the proximity of the detention facility
to the school or the businesses . New homes in the
$150 , 000 range are being built within two and three
blocks of the facility, and a Real Estate developer
indicates that land values have not been adversely
affected. The Adams County Detention Facility has
9:12<19
won the "Brighton Beautification Award" three years
in a row for maintaining the best yard and
landscaping on their property.
Number Seven: At the same time the Boulder County Jail was being
constructed in 1988, Noble Park, a medium density
residential development of one hundred and forty
( 140) homes was begun two blocks from the jail .
The Noble Park development is now in its final
phase of construction. The developer states that
the median price of Noble Park homes was one
hundred and fifty thousand dollars ( $150, 000) in
1988, and is now two hundred and thirty thousand
dollars ( $230, 000) . Commercial development is
presently occurring on land immediately adjacent
to the jail .
Number Eight: The High Plains Detention Center is a one hundred
and seventy-five ( 175) bed high security juvenile
correctional facility in Brush. Mayor Larry
Coughlan and other members of the High Plains
Advisory Board state that the facility is a
positive, non-intrusive land use. Adjacent to the
High Plains Detention Center is Mohrlang
Manufacturing, and the Brush School District
offices, neither of which have any concerns
regarding the facility. Compatibility has not
been an issue . Land values have not declined and
community safety has not been compromised. Quotes
from Mayor Coughlan include "High Plains has been
nothing but good for Brush" , and even though the
facility just expanded, "Most new people in town
don 't even know the facility is there. "
Number Nine: Since the construction of the Larimer County
Detention Center, over four hundred thousand
(400, 000) square feet of commercial/industrial
development has occurred on property immediately
adjacent to the facility, including a child day
care center and the District offices of the Girl
Scouts of America. No safety or "image" concerns
have resulted from the detention center ' s
proximity to the development, and land values have
continued to increase.
901249
PREPAROLE RELEASE CENTER
PROGRAM ACTIVITIES SUMMARY
Course Contact
Component Hours Brief
Employment 36 Resume is completed; job seeking
and interviewing skills videotaped; mock
interviews; Job Services liaison;
individualized job referrals, and job
verifications
Family 30 Early childhood lecture series, family
Relationships dynamics film series (Bradshaw) ,
readjustment issues
Communication 36 Assertiveness, flexibility, social
and Interpersonal skills, negotiating, "getting along"
Skills in the free world
Money Management 20 Budgeting, saving/checking accounts,
obtaining credit, insurance, community
resource referrals, tax information
Responsibility 24 Assessment instrument--Case Management
and Correctional Classification, specific criminogenic
Expectations factors, self-responsibility, present
legal and correctional status, guest
speakers to outline parole /I . S.P. /
Community Corrections expectations, mock
parole hearings
Chemical 36 Educational lecture and film series
Dependency on disease concept of chemical
dependency and the recovery process
Relapse 36 Recognizing prerelapse symptoms, com-
Prevention pulsive behaviors, types of recovery,
daily planning, staying sober, community
referrals
Education 54 Basic literacy, advanced education,
and English as a second language
courses .
92,1.2, 9
(continued)
Course Contact
Component Hours Brief
Anger and Stress 30 Sources, direction, and emotional
Management control and expression, journal
writing, self-esteem, parent/child
anger; relaxation techniques, self-
discipline and emotional control,
film and lecture series
Health and 30 AIDS Series, nutrition, personal
Wellness hygiene, exercise for life
Domestic 36 Specialized component directed at
Violence perpetrators of domestic violence;
patterned after licensed AMENDS
programs
Leisure Time 60 Staff guided lectures, films, and
Activities activities, assisted by UNC graduate
students in Health, P.E. , and Recreation
Department
Cognitive 70 Ross model, series on changing percep-
Restructuring tions and thought processes, leading to
productive decision making
CPR and First 20 CPR and First Aid certification courses
Aid taught by qualified instructors
Blood Donor 6 On a voluntary basis, offenders are
Program given credit for two contact hours for
donating blood once each month with
on-site services provided by the
American Red Cross
AA/NA/Bible 90 Nightly support groups for chemical
Study/Big Book dependency, religion, and other special-
Study ized interest and needs
921249
(continued)
Course Contact
Component Hours Brief
N
Special Needs 90 Recognizes enhanced programmatic
Offender requirements of offenders unable to
participate in mainstream program
because of academic, language skills,
physical or mental health limitations .
Emphasizes continuum of enhanced
services upon release including
community corrections residential
placements facilitated by Division of
Criminal Justice
Individual 3 Final review of housing, employment
Release Planning and correctional supervision upon
release; case specific referrals and
appointments verified; discharge summary
completed; appointment established with
parole officer, and staff transport
details finalized.
Total Course
Component
Contact Hours 707
921249
SUMMARY COMMENTS
As a Board, the task before you today is to separate facts from assumptions and
assertions.
The following Facts warrant approval of the Final Plan:
1 . The project is approved by Planning Staff, referral agencies and utility
districts, and is in compliance with all PUD requirements.
2. The building design is technically correct.
3. All life safety issues have been addressed, reviewed, and approved by
Mountain View Fire Protection District Staff by letter on 12/2/93.
4. The Pre Release facility, as designed, is secure. It is as secure as this Weld
County Adult Detention Center across the plaza, across the hall and on the
third floor of this building. If Weld County felt that the security restraint
classification now imposed on this building, and as proposed for Del Camino,
posed a personal safety threat, would we even be meeting here today?
EXHIBIT
ie 93- 42
90111249
PL0100
931383
SEE ALSO 931249
EXHIBIT 6B FENCE
6C PHOTOS
6F MAP
ARE IN THE ORIGINAL
FILE AND NOT SCANNED
( ' - \A R/ 6O \ r0
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(2) ( 112 h c c , i 2
EXHIBIT
Weld County Commissioners Meeting j 0000e00
December 8 , 1993
Ladies and Gentlemen :
My name is Ronald L . Hiatt . My wife and I reside at 1405
Willow Drive, Berthoud, Colorado . I am the General Manager
of the Del Camino Service Plaza and Truck Wash, treasurer
of the Saint Vrain Sanitation District , a partner in the
Super 8 Motel at Del Camino , a partner in Del Camino Recreation,
a proposed 77 acre pay recreation and R.V. Park area.
Our family has purchased and resold two other businesses in
Del Camino , plus lived in Del Camino for four of the seven
years we have lived in Colorado .
Our son, Rick, currently resides at 3598 Hy . 119 , Del Camino,
owns the Woods and Water Sporting Goods Store , and is a partner
in Del Camino Recreation.
My brother, Dennis and his wife Jackie are managing partners
of the Super 8 Motel. They reside in an apartment at the
motel and have done so since May 1 , 1986 .
I tell you these facts because the Hiatt families are
committed to the well being of the residents and the business
environment of the Del Camino area . The safety of all people
that pass through or live in the Del Camino area is of our
utmost concern.
912 13
2.
It is because of these committments that I started my own
investigation in respect to the proposed Pre Release Facility.
My investigation took me to the cities of Lincoln, Nebraska,
(home of Nebraska ' s largest penal complex) , Pueblo , Delta
and Canyon City, Colorado , all with their own prison
facilities .
Traveling at my own expense, asking questions of my own accord,
talking to citizens , political leaders, professional people,
blue collar employees and business men and women, I present
the following information. I asked several questions of each
person I interviewed and today I share a few of the questions
and answers with you.
Question : Should the prison in your town be closed?
Answer : The overwhelming response was NO !
Question: What economic impact does the prison have on
your community?
Answers : Jobs , creation of wealth, increases my sales , the
largest percent of my business comes from the prison. All
participants answering my survey question agreed that their
communities and themselves were financially better off with their
respective facilities located in their cities .
Question: Has real estate values decreased because of the
incarceration facility?
9L .2.;19
3 .
Answers : Delta - a real estate agent said "real estate
values in Delta and the communities around us have been rising
for the past four years . We are now experiencing the
Californians and retirement aged people moving to our
community and building permits are on the increase" .
Pueblo and Canyon City real estate values are somewhat static .
The feeling of the respondents was , "without the prisons the
real estate market would be a lot worse" .
The most profound increases in real estate values were in
Lincoln, Nebraska . A five percent increase annually for the
past four years was the figure most quoted . Developtent within
two miles of the Nebraska State Penitentiary is comprised of
a major new shopping center , fast food restaurants , commercial
office parks , churches , new single and multi family housing
developments . One of Nebraska ' s largest hi-tech companies ,
Information Technology, Inc . , broke ground this fall for their
second eight story office complex . This building is projected
to house 150 employees, bringing ITI ' s employment to 325 .
Their first and second buildings are within two miles of the
states largest prison. Ladies and Gentlemen, I don ' t believe
the owners of McDonalds , Hardees , clothing stores , a new miniature
golf course, Information Technology, and new home owners around.
the Nebraska prison would put their capital or their lives at
risk if having a prison is such a bad neighbor .
I now ask that you focus with me on the St . Vrain Sanitation
District . 9-,
213
4 .
The County Commissioners in the mid 1980 ' s foresaw a great deal
of growth coming to the Del Camino area . One consulting firm
in Longmont estimated there would be 20 , 000 people living within
a five mile radius of Del Camino by the year 2000 .
So ! Based upon this information, the comprehensive plan approved
the area as commercial in nature, and with the wisdom of a few
developers, St . Vrain Sanitation District was born, presented
to the Count Commissioners , and approved, planned, funded
$4 , 000, 000 worth and built .
Economic stagnation set in just as the sanitation district
came on line, and stagnation remains today .
After refinancing $4 , 500, 000 in bonds in 1991 , trying to
keep our mill levy down so we can encourage development , we now
find the mill levy at 29 .99 and going up .
St . Vrain Sanitation mill levy began in 1986 at 12 .5 - in 1991
the mill levy increased to 19 . 99 , in 1992 St . Vrain Sanitation
mill levy increased to 29 . 99 , and tomorrow morning St . Vrain
Sanitation Board is certifying a mill levy of 34 .99 or a 66 .66%
increase in taxes over the past two years . Without development
to pay for bonded debt , a mill levy of 39 .99 is expected for 1995 .
In real dollars, what does this mean to the Super 8 Motel?
Sewer taxes have risen from $4 , 276 to $ 7 , 005 - an increase of
$2 , 729 since 1991 .
S .
As Treasurer for the St . Vrain Sanitation District , I ask that
you approve the building of this Pre Release Facility in our
district .
It has been said in testimony before the Planning Commission
by one of the opponents to the Pre Release Facility being built
at Del Camino , and I quote, "not even the business community of
Del Camino supports the building of the proposed Pre Release
Facility" . Whoever testified before the Planning Commission does
not have their facts straight .
In your packets I have furnished you two pages of signatures
belonging to business owners and/or managers of the Del Camino
business area . Out of 23 business owners or managers , three
would not sign this petition and two were out of state . As
you can see by their signatures, the Del Camino business
community does indeed support the building of this facility .
In conclusion: If I believed that by supporting the building of
the Del Camino Pre Release Facility, public safety, real estate
values or investment capital would be in jeopardy, I would not
be supporting this project . However, my beliefs and my convictions
are substantiated by the research conducted on my own and shared
with you today .
I, and 18 business people in Del Camino , respectfully ask that each
of you vote to approve the building of the Del Camino Pre Release
Facility .
THANK YOU FOR VOTING YES !
SC 1. 243
? A
December 2 , 1993
Weld County Commissioners
Weld County
Greeley, Colorado
We would like to request your favorable consideration
of the Pre-parole facility for the Del Camino area.
We believe this endeavor will enhance the economic development ,
increase the industrial base, and provide additional employment
in the Del Camino area.
Sincerely, ` � p�
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31:12,13
Weld County Commissioners
Weld County
Greeley , Colorado
We would like to request your favorable consideration
of the Pre—parole facility for the Del Camino area .
We believe this endeavor will enhance the economic
development , increase the industrial base , and provide
additional employment in the Del Camino area .
Sincerely ,
E : p DATE : REP:
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GORSUCH, KIRGIS,CAMPBELL,WALKER AND GROVER
ATTORNEYS AT LAW
SUITE 1100
1401 SEVENTEENTH STREET
DENVER, COLORADO 80202-9624
MAILING ADDRESS
P. 0. BOX 17180
DENVER, COLORADO 80217-0180
TELEPHONE (303) 299-8900
FAX 1303) 298-0215
GERALD E. DAHL
December 7, 1993
County Board of County Commissioners
Administrative Offices
915 10th Street
Greeley, Colorado 80632
Re: Case No. S-344
The Villa at Greeley Inc.
Members of the Board:
I represent the Concerned Citizens of Southwest Weld County,
a large group of residents, homeowners and business people in the
area of the proposed facility. The Concerned Citizens oppose this
application and urge the Board to deny it for the following
reasons:
1. The Fort Junction PUD District has been abandoned.
The original PUD district was approved in early 1989. The
Weld County Zoning Ordinance requires the landowner to either (1)
present a PUD Plan application within one year of the PUD district
approval, or (2) present evidence "substantiating that the PUD
project has not been abandoned " Section 28.15.5. My
review of the file has disclosed that this annual requirement was
not fulfilled by the landowner in 1990, in 1991, or in 1992 . The
present PUD Plan application was filed over four (4) years after
the PUD district was approved.
GED\51615\77289.1 = EXHIBIT
g
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91) 249
Page 2
December 7, 1993
2. Prison uses were not contemplated at the time the Fort
Junction PUD District Plan was approved.
This issue is fundamental in the case. No one can honestly
maintain that the 1988 rezoning contemplated or approved a prison.
I have reviewed the file approving the Fort Junction PUD District.
No mention of prison uses is made anywhere in that record. The
church applicant in 1989 had various plans for a church or school.
In fact, as discussed below, it was the intention of the Planning
Commission and Board of County Commissioners at that time that only
the specific listed uses in the C-1 through C-4 and I-i zones were
to be allowed as a part of the Fort Junction PUD District rezoning.
3. Prison uses are not permitted by the Fort Junction PUD
District.
a. The BOCC Resolution
The March 8, 1989 resolution of the Board of County
Commissioners approving the Ft. Junction PUD is very specific with
respect to the uses granted by that rezoning:
NOW, THEREFORE, BE IT RESOLVED by the
Board of County Commissioners of Weld County,
Colorado, that the application . for a
Change of Zone from A (Agricultural) to
Planned Unit Development (C-1, C-2, C-3, C-4
and I-1) uses as listed in the Weld County
Zoning Ordinance, and one oil and gas
production facility site on the above-
referenced parcel of land be, and hereby is,
granted subject to the following conditions:
(emphasis supplied)
The phraseology employed in designating the "uses as listed" in the
Weld County Zoning Ordinance was to incorporate those uses
specifically listed in the C-1 through C-4 and I-1 districts. A
PUD plan may not be approved for a use not listed in the District.
The Zoning Ordinance allows an applicant for PUD district rezoning
to request the specific use desired. However, the application
before you is not for rezoning.
GED\57675\77289.7
9y1249
Page 3
December 7, 1993
b. The Commercial Districts
The C-1 through C-4 district use descriptions contains
detailed lists of allowed uses in each category Zoning Ordinance,
Sections 33 .2 ; 33. 3; 33.4 ; 33.5; 34.2. These descriptions do not
include or contemplate prison uses. "Prison, " "preparole" or
"correctional facility" do not appear as allowed uses in any of the
C-1 through C-4 or I-1 zones. The requirement of the 1989 BOCC
resolution is that such uses be listed to be allowed. Colorado
follows the general rule of statutory interpretation that laws
which specify certain situations must be construed to exclude
situations not specified. Truck Insurance Exchange v. Home
Insurance Company, sql P.2d 354 (Colo. App. 1992) ; Meyer v.
Charnes, 705 P.2d 9l'f(Colo. App. 1991) . This rule has been applied
in the zoning context. Where a zoning statute or ordinance
specifies certain uses, unlisted uses are excluded. Cox v. Prince
George's County, 586 A.2d 43 (Md 1991) . The Weld County Zoning
Ordinance specifically lists allowed uses in its Commercial zones.
Prison uses are not listed in those zones, and are therefore
excluded.
The lists do include police and fire stations, but the present
application does not qualify for that category, even by analogy.
The applicant is a for-profit corporation offering prison services,
not to the general public. Police and fire stations are operated
by local governments or special districts, and provide services to
the general public. From the perspective of use compatibility, a
prison bears no resemblance to a police or fire station: the
public and neighborhood safety aspects of the two uses could not be
more different.
c. PUD District Reauiremeats
PUD district zoning requires each PUD district to recite the
uses allowed in that district. Uses in a PUD Plan application
"must be identical to those located and described on the Planned
Unit Development District plat. " Section 28.9. The proposed use
is not even listed in the referenced zones; the applicant can
hardly claim that the proposed use is "identical" to such a listed
and zoned use. The applicant must demonstrate that its proposed
use is identical to one shown on that plat. The plat, in turn,
recites merely "C-1 - C-4, " and "I-1. " Planned development is not
a catch-all for injecting into a neighborhood a use which would
otherwise not be allowed. Ford Leasing Development Co. v. Board of
County Commis, 186 Colo. 418, 528 P.2d 237, 240 (1974) . The
Zoning Ordinance requires genuine specificity when uses are allowed
in a PUD zone.
GED\51615\77289.1
Page 4
December 7, 1993
There is an important public policy reason for requiring PUD
plan applications to be only for those uses allowed by the
underlying zoning. Failing to do so, as is here proposed, denies
residents the due process protections of the rezoning process, as
described below.
4. Processing a POD plan application for a use not allowed in the
underlying POD district denies due process of law.
It is important to establish at the outset that the final PUD
plan application under consideration in this case is not an
application for rezoning. A rezoning application would be subject
to notice and hearing requirements which the applicant has not
satisfied in this case. The notices for this hearing and that
before the Planning Commission were for a PUD plan application, not
an amendment to the PUD District itself. For the county to treat
this PUD plan application for a non-listed use in this zone
district as a final plan application is to deny residents of the
county due process of law and to render the actions of the county
void.
The members of the Concerned Citizens of Southwest Weld
County, along with all residents of the County, have a
constitutional right to due process of law. Due process
"require[s] an opportunity for property owners to be heard before
ordinances which substantially affect their property rights are
adopted. " Board of County Comm'rs v. City of Thornton, 629 P.2d
605, 611 (Colo. 1981) (citations omitted) . The value and use of
the property owned by these residents of Weld County will be
substantially impacted by the proposed development. See id. at 609
(recognizing that property owners have a legally protected interest
in insulating their property from adverse effects caused by legally
deficient zoning determinations concerning nearby property) .
Because the 1989 approval of this PUD District listed only use
classifications which do not include any prison or correctional
facilities, the notice provided to the public concerning the PUD
zoning in 1989 could not and did not include notice of use of the
involved property as a prison. Notice which does not mention the
use involved fails to sufficiently warn all persons whose rights
might be affected by the proposed action. See Fedder v. McCurdy,
768 P. 2d 711, 714 (Colo. App. 1988) .
Colorado courts have recognized the importance of the
constitutional protections afforded the public through the public
notice and hearing requirements for rezoning. Treatment of a
request for an unpermitted use as anything less than a request for
GED\51615\77289.1
Page 5
December 7, 1993
rezoning has been interpreted as an intolerable attempt to sidestep
the normal processes required for rezoning, such as detailed notice
requirements and study by the staff and planning commission.
Murray v. Board of Adjustment. Larimer County, 42 Colo. App. 113,
594 P.2d 596, 597 (1979) .
The entity responsible for zoning must, in the exercise of its
police powers, afford procedural due process as delineated in its
zoning code. McArthur v. Zabka, 177 Colo. 377, 494 P.2d 89, 93
(1972) . Residents of the County have a right to rely upon the
Weld County Zoning Ordinances and to rely on the fact that zoning
of the land in their neighborhood will not be changed absent
substantial reasons therefor. Fedder v. McCurdy, 768 P.2d 711, 713
(Colo. App. 1988) (citing Holly Dev't Inc. v. Board of County
Commissioners, 140 Colo. 95, 342 P.2d 1032 (1959) ) .
Processing this application for an unpermitted use would
violate the County's own procedures. From the standpoint of due
process, property owners have the right to proceed upon the
assumption that the governing body will follow the dictates of the
ordinances concerning zoning. McArthur v. Zabka, 494 P.2d at 93.
A legislative body is bound to follow the regulations it has
adopted and, when the governmental body fails to follow the zoning
ordinances or its own established procedures when engaging in
rezoning, it is violating the requirements of due process. See
Miller v. City of Albuquerque, 554 P.2d 665, 668-69 (N.M. 1976) .
To process an application to develop a non-permitted prison
use in the district denies Weld County residents due process of law
by ignoring the requirements of the Zoning Code established for
their protection. The proper procedure, which would provide due
process, is to require an application under Section 28. 15. 1 to
amend the Fort Junction PUD District to add prisons as an allowed
use.
5. The application impermissibly proposes an amendment to the
1989 plat.
As a condition of the Planning Commission's approval and the
Board of County Commissioners' approval of the Fort Junction PUD in
1989, the following plat note was required (and does appear) on the
Fort Junction PUD District plat:
a. Prior to recording a PUD plan plat, a law
enforcement authority shall be formed
according to State Law. The law
enforcement authority to be formed shall
GED\51615\77289.1
fir Jas. An
Page 6
December 7, 1993
be capable of expanding to serve other
areas within the I-25 MUD area to avoid
duplication of overhead and other
operating costs.
This plat requirement was based, in turn, upon a Memorandum
from the Weld County Sheriff dated December 20, 1988. A copy is
attached hereto as Exhibit 2. The Memorandum states, in pertinent
part:
It will be our request that the New
Creation Fort Junction development form an LEA
or join the LEA created by the Crossroads
Development if it is created first. We also
request that whatever LEA is formed first, all
other Del Camino area development be required
to join, regardless of zoning, due to the
significant concentration of resources
occurring at Del Camino. This area is
literally becoming an unincorporated city that
will demand far more resources than will be
available under conventional county mill
levys. (emphasis supplied)
The applicant has (admittedly) not fulfilled this condition
and instead claims that the County Sheriff has changed his mind and
that an LEA is no longer necessary. However, neither the applicant
nor the Sheriff can unilaterally or cooperatively amend the Fort
Junction PUD District plat. The Ft. Junction plat requires the
formation of an LEA prior to the approval of an application for any
development in the Ft. Junction PUD. The plat note was established
as part of rezoning process. It may not be eliminated by the
Commission or the Board of County Commissioners as a part of the
(current) PUD plan approval process. No notice has been given to
the public of any request to amend the Ft. Junction plat by
deleting a requirement. Such notice is required to afford due
process. Until the LEA has been formed as the plat note requires,
the County is without power to approve a final PUD application for
any portion of the Fort Junction PUD District.
6. The application does not satisfy the requirements of the
Zoning Ordinance.
Planned development applications must meet all the standards
and procedures set forth in the planned development ordinance.
Ford Leasing Development Co. v. Board of County Comm'rs, Colo. 528
P.2d 237, 240 (1974) .
GED\51615\7289.1
3-14.2-19
Page 7
December 7, 1993
The Weld County Zoning Ordinance sets out detailed
requirements for a complete PUD plan application at Sections 28.9,
28. 10 and 28. 11. The present application fails to satisfy these
requirements, either in scope or detail. In many instances, the
applicant has simply copied general data submitted in 1988 for the
PUD district application. As we know, the 1988 application neither
mentioned nor contemplated a prison; data from that date is of
little relevance to the present prison application.
One of the submission requirements is an "off-site road
improvements agreement proposal. " Section 28.9. 1.7. The applicant
has submitted one such proposed agreement. However, at Exhibit 9
to the application, the applicant takes the position that no off-
site road improvements are necessary. This is not consistent with
the position of the Colorado Department of Transportation as found
in Theresa G. Jones' letter on behalf of DOT to Keith Schuett,
dated September 17, 1993 . That letter provides, in pertinent part:
It should be noted by both the County and
the owners of the Fort Junction property that
although the Department has clearly committed
to the construction of the newly-aligned
frontage road, we have not made a commitment
to construct auxiliary lanes which are
necessary to serve development along the state
highway, as would be required by the State
Highway Access Code. . The issue of who
constructs that [right [right thru decel] lane
remains to be resolved. (emphasis supplied. )
I am currently pursuing resolution of the
Department's position. It must be noted that
if our position is that the lanes made
necessary by development must be constructed
or guaranteed by the property owner, the State
Highway Access Permit required for
construction of access from the frontage road
must include those plans, along with a full
description of the construction stating which
will occur.
The letter goes on to indicate that there appears to be a
"borderline" need for a left deceleration lane. These issues are
not addressed in the proposed Off-site Improvements Agreement
submitted by the applicant.
GED\51615\77289.1
9:.1.2'19
Page 8
December 7, 1993
7. The proposed prison use is incompatible with the Weld County
Comprehensive Plan and with the affected community.
The subject property lies within the Firestone/Frederick/
Dacono Urban Growth Boundary. (Comprehensive Plan, page 32 . ) The
tri-area commission has unanimously recommended that the applica-
tion be denied. This recommendation should be given weight by this
Commission. (Comprehensive Plan, page 34, para. C. ) Rather than
"not objecting" to this land use application, the Longmont Planning
Director, stated that "I understand that the proposed land use is
consistent with the PUD and the Weld County Comprehensive Plan
. " As described above, the proposed prison land use is not
permitted in this PUD; the Concerned Citizens further believe that
it is inconsistent with the Weld County Comprehensive Plan.
The subject property is listed for commercial use in the I-25
Mixed Use Development Area Conceptual Land Use Plan. (Comprehensive
Plan, page 46. ) One policy of the I-25 PUD Area is that new
development "demonstrate compatibility with existing surrounding
land use . " (Comprehensive Plan, page 49, para. 5. ) The
Concerned Citizens feel strongly that the proposed prison is not
compatible with the surrounding neighborhood. Evidence of this
incompatibility is already present in the record:
a. Field check dated September 7, 1993 : "This is in a
highly-populated area because of all of the different
businesses located to the west, because of kinds of
businesses, this is an area where people come and go a
lot. "
b. Letters from residents, business owners and homeowners in
the neighborhood, expressing concern with the
compatibility of the use and the safety risks associated
with inmates and visitors to the facility.
c. A People's Petition signed by over 1,400 residents of
Southwest Weld County filed in opposition to the project,
and made a part of the record.
d. The Concerned Citizens will provide extensive testimony
on this point. As part of its presentation to you today,
the Concerned Citizens will present witnesses on the
following subjects:
(a) Concerns of business owners in the Del Camino area
with respect to the economic impact of the proposed
operation on their businesses, as well as the
GED\51615\77289.1
94:1.'2 9
Page 9
December 7, 1993
safety and welfare of their employees and
customers.
(b) Neighborhood concerns relating to safety and
compatibility, as expressed by individual residents
and homeowners in the affected community.
(c) Nature of the expected prison population and
capacity of the applicant to safely conduct that
operation;
CONCLUSION
The applicant in this case has the burden of proof with
respect to all six (6) of the criteria in Section 28.13 . 1. This
letter and the presentation of the Concerned Citizens today
demonstrate that the applicant cannot meet that burden with respect
to five of the criteria:
§ 28.13.1.1: The proposal is inconsistent with the
Comprehensive Plan.
§ 28.13.1.2: The PUD Plan applied for does not conform to
the PUD district in which it is located
(prison use not allowed) .
§ 28. 13.1.3: The prison use applied for is not compatible
with the surrounding area as demonstrated by
the County Comprehensive Plan and local
planning agencies.
§ 28.13.1.5: The application does not comply with the
relevant Overlay District requirement.
(Section 54.3 : Use Permitted - prison use not
permitted in the Fort Junction PUD district. )
§ 28.13.1.6: The application fails to satisfy the submittal
requirements for a proper PUD Plan.
GED\51615\77289.1
9%;'12-19
Page 10
December 7, 1993
The Concerned Citizens urge the Board to deny the application for
the reasons described.
Yours truly,
GORSUCH, KIRGIS, CAMPBELL,
WALKER AND GRO
(4;?,Aalk2
Gerald E. Dahl
GED/tah
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TRANSFER AND SR I0 IC Ri li lil ,
SERVICES AGEN
Shareholder P.O. ervk ;Inc ,)
O Box 5330 � R
Denver,Colorado 80217s , :
1
INDEPENDENT P ACGp01,10
• FORTHEMINIS , , i „,a
Arthur Aadersea&Co EXHIBIT
33 West Maeree 0f*0et tL , �
' Chicago,BDae1a : ..3' '
1
1 r F '
2 19
CHAIRMAN'S LETTER
Dear Shareholder:
It is a pleasure to report that both Nuveen Municipal Bond Fund,Inc.and Nuveen
Insured Municipal Bond Fund continued to deliver attractive levels of income free
from federal taxes over the last six months,along with attractive total returns.
Your Fund's performance is discussed in detail on the following pages,but two
points are worth emphasizing here.
Primarily,the factors that made your Nuveen Tax-Free Value Fund investment
attractive in the first place are even more important today,in light of the passage of
the new tax program,The Revenue Reconciliation Act of 1993.
The Act in large measure reverses the low-tax-rate/broad-tax-base approach of
the 1980s in favor of a more sharply progressive tax structure.Combined with tax
increases in several states and municipalities,many Americans will face higher tax
bills this year and beyond,making the tax-free income your Nuveen investment pro-
vides even more valuable in helping you ensure your financial security and reaching
your personal goals.
Tax-free returns are only one aspect of your Nuveen investment,however,and not
always the most important one.To many of our investors,our value investing
approach is just as important.
While the outlook for the municipal market is generally bright,there are tens of
thousands of issues in the market,each with its own characteristics and potential
rewards.That's where we believe our value investing approach comes to the fore.
Supported by a seasoned team of portfolio specialists and one of the investment
banking industry's leading municipal research groups,we're constantly searching
for quality bonds with yields,prices,and prospects that make them seem exception-
ally attractive when compared with other bonds in the market.
As the performance summary beginning on page 4 of this report shows,our empha-
sis on value continuesto provide our investors with much more than attractive tax-
free yields.It also provides them with investments that seek long-term quality and
principal stability—a strong foundation from which to build toward your investment
goals and lifetime dreams.
931249
Whether you are a new investor or a long-time friend of Nuveen,we appreciate the
trust your have placed in our Tax-Free Value Funds,and we look forward to helping
you meet your investment objectives in the future.
Sincerely,
Richard J.Franke
Chairman of the Board
October 15, 1993
TABLE OF CONTENTS
1 Chairman's Letter
3 Performance in Perspective
4 Funds Performance
5 Portfolio of Investments
25 Statement of Net Assets
26 Statement of Operations
27 Statement of Changes in Net Assets
28 Notes to Financial Statements
34 Financial Highlights
2
901249
PERFORMANCE IN PERSPECTIVE
The municipal market turned in a solid performance over the last six months,
supported by fundamental factors that continue to extend the market's strength.
Most important,inflation—the factor that most affects bond prices and yields—
remains under strong control.At this point,the real inflation rate,reflecting
actual business and consumer buying patterns,is running at about 3 percent to
4 percent a year,and there is little on the horizon to suggest it will rise in the
near term.The economy continues to expand at a gradual pace,leaving capacity
to absorb increases in demand for goods and services without putting upward
pressure on interest rates and prices.
At the same time,while municipal interest rates remain near postwar lows—
and municipal bond prices near record highs—the municipal market's move from
February through August was much less pronounced than the move in the govern-
ment sector.Where yields on Treasury issues dropped dramatically,strong volumes
in both new tax-free issues and advance refundings kept municipal yields at very
attractive levels.Beyond providing investors with attractive tax-free income,these
relatively high municipal bond yields may mean that municipal bond prices will be
more resilient should interest rates increase in general.
Finally,demand for tax-free securities continues to run at a record pace,sparked
by the passage of the new tax act and major returns of principal from early redemp-
tions of outstanding debt.
In this low interest-rate environment,we are managing our portfolios conserva-
tively,putting some emphasis on defensive investing.We are focusing on bonds
that provide strong returns today,but will continue to perform well relative to
other bonds even if interest rates rise.
Specifically,we have(1)emphasized advance-refunded issues,which have helped
improve our portfolios'quality and total return while providing attractive yields;
(2)held bonds selling at premium and producing strong yields to their call dates or
maturity,and(3) sold certain issues that appear to be fully valued.All of these steps
are designed to provide a price cushion in our portfolios should interest rates start to
rise,while providing investors with a strong,dependable tax-free income stream.
p 3
921249
FUNDS PERFORMANCE
The following charts provide summary financial and performance data for the
portfolios of the Nuveen Municipal Bond Fund and the Nuveen Insured Municipal
Bond Fund as of August 31, 1993.
MUNI BOND INSU Ea MUNI :INI
Total Net Assets(000's) $2,571,985 $686,952
Net Asset Value
Per Share $9.52 $11.10
Current SEC
Yield on NAV 4.92% 4.98%
Taxable Equivalent
Yield on NAV' 7.69% 7.78%
Total Return on NAV
for the 12 months 3.54% 4.99%
ended 8.31.93
Taxable Equivalent
Total Return on NAVE 5.10% 6.46%
Portfolio Quality
(%A or higher) 92.0% 99.0%
Average Duration
(years) 3.78 7.09
'An investor subject to the 36%federal income tax rate would have to receive this return from a
fully taxable investment to equal the stated Current SEC Yield on NAV
2An investor subject to the 36%federal income tax rate would have to receive this return from a
fully taxable investment to equal the stated Annualized 7btal-Return on NAV
4
91249
.,o- ree ,a ue -um s semiannual Report
August 31,1993
PORTFOLIO OF INVESTMENTS
(Unaudited)
MUNICIPAL BOND
Principal
Amount Description Market
Ratings* Value
Alaska-2.8%
Alaska Housing Finance Corporation,Insured Mortgage Program:
$ 4,610,000 6.375%,12/01/07
3,290,000 7.650%, 12/01/10 Aa $ 4,719,902
28,280,000 7.800%, 12/01/30 Aa 3,586,758
2,430,000 Alaska Housing Finance Corporation,Collateralized Mortgage,S.875°/n,4/01/21 Aaa s 31,406,920
27,250,000 Alaska State Housing Finance Corporation,6.600%, 12/01/23 8,960,210
Aa 28,960,210
Arizona-0.7%
Salt River Project Agricultural Improvement and Power District:
4,675,000 6.000%,1/01/07
9,145,000 5.000%, 1/01/10 AA 4,759,477
4,570,000 Scottsdale Industrial Development Authority(Scottsdale Memorial Hospital), AA 8,7613,781
8.500%,9/01/07
Aaa 5,384,465
Arkansas-0.4%
Jefferson County Hospital:
11,210,000 6.000%,7/01/06
N/R 11,396,759
California-7.5%
27,600,000 California Health Facilities Financing Authority(Daughters of Charity),
9.250%;3/01/15 Aa 31,248,720
3,800,000 California Housing Finance Agency,Home Ownership,6;875%,2/01/32
6,000,000 California Public Works Board(Calpatria State Prison),6.500%,9/01/19 Aa 4,101,568
(Pre-refunded to 9/01/01) AAA 6,860,940
10,000,000 California Statewide Communities Development Authority(St.Joseph Health
System),5.500%,7/01/23 AA 9,883,500
15,825,000 Los Angeles Department of Water and Power,6.500%,4/15/32
AA
21,000,000 Los Angeles Wastewater System,5.700%,6/01/23Aaa 14,196 11,522,480
,750
15,000,000 Los Angeles County Sanitation Districts Financing Authority,5.000%, 10./01/23AA
25,000,000 Los Angeles County Transportation Commission,-6.750%,7/01/19 14,196,750
(Pre-refunded to 7/01/02) Al 29,338,000
4,670,000 Metropolitan Water District of Southern California,5.500%, 1/01/10
22,870,000 Northern California Power Agency,7.150%,7/01/24 AA+ 4,719,269
4,500,000 Sacramento Municipal Utility District,8.750%, 11/15/00 A— 25,136,874
6,092,751 San Diego County Certificates of Participation(Contel), 7.500%,2/08/96 Baal 4,644,450
7,600,000 Santa Clara County Certificates of Participation (Capital Project No. 1),8.000%, N/R 6,553,789
10/01/06(Pre-refunded to 10/01/96) AAA 8,749,,-348
8,050,000 University of California,6.875%,9/01/16
A 9,255,327
5
9a1249
Nuveen Tax-Free Value Funds Semiannual Report
August 31,1993
PORTFOLIO OF INVESTMENTS
(Unaudited)
Municipal Bond-continued.
Principal Market
Amount Description Ratings* Value
Colorado-2.5°k
$ 36,630,000 Colorado Housing Finance Authority,7.250%,11/01/31 AA— $ 39,875,418
Denver City and County Airport System:
11,975,000 8.375%,8/01/11 -Baal 12,586,683
6,840,000 9.250%,8/01/20 Baal 7,299,238
4,250,000 7.250%,11/15/25 Baal 4,673,810
Connecticut-1.0%
20,250,000 Connecticut Housing Finance Authority,7.550%,11/15/08 AA 22,502,408
2-,970,000 Connecticut Resources Recovery Authority,8.625%x, 1/01/04 A 3,307;867
District of Columbia-0.7%
7,780,000 CHT Housing,Inc.,FHA-Insured Mortgage,8.500%, 1/01/22 N/R 8,056,190
8,715,000 District of Columbia.General Obligation,6.875%,6/01/11 Aaa -9,680,448
Florida-8.3%
34,500,000 Alachua County Health Facilities Authority(Shands Hospital),8.000%, 12/01/15
(Pre-refunded to 12/01/94) Al 37,199,970
11,410,000 Dade County Port Authority,6.200%,10/01/11 Aa 11,492,951
4,500,000 Dade County Health Facilities Authority(Mt.Sinai Medical Center),8.400%, 12/01/07
(Pre-refunded to 12/01/99) AAA 5,379,570
31,000,000 Hillsborough County Industrial Development Authority,Pollution Control(Tampa
Electric),8.000%,5/01/22 Aa2 38,103,960
Jacksonville Electric Authority.
23,450,000 7.000%,10/01/11 Aa1 24,779,381
9,500,000 7.375%, 10/01/13 (Pre-refunded to 10/01/95) Aaa 10,387,775
8,150,000 6.500%,10/01/20 Aa1 8,493,278
26,950,000 North Broward Hospital District,8.000%, 1/01/14 (Pre-refunded to 1/01/96) AAA 30,361,870
33,700,000 Orlando Utilities Commission,8.500%, 10/01/09(Pre-refunded to 10/01/95) Aaa 37,798,594
8,005,000 Pensacola Health Facilities Authority(Daughters of Charity),7.750%, 1/01/03 Aa 8,833,838
Sarasota Elderly Housing Corporation:
115,000 7.500%,7/01/95 A 118,612
1,520,000 7.500%,7/01/09 A L587,032
Georgia-2.4%
27,135,000 Georgia Municipal Electric Authority,6.200%,1/01/09 AA— 27,632,927
2,975,000 Appling County Development Authority,Pollution Control(Georgia Power
Company), 10:600%,10/01/15 Baal 3,416,341
Burke County Development Authority,Pollution Control(Georgia Power Company):
7,795,000 12.250%,8/01/14 Baal 8,576,605
13,000,000 11.625%,9/01/14 Baal 14,308,970
4,000,000 10.125%,6/01/15 Baal 4.486,400
3,980,000 Metropolitan Atlanta Rapid Transit Authority,Sales Tax,6.125%,7/01/99 A+ 3,994,447
6 921249
Principal
Amount Description Market
Ratings* Value
Hawaii-0.9%
$ 8,000,000 Hawaii Department of Budget and Finance(Kapiolani Health Care System),7.650%,
7/01/19(Pre-refunded to 7/01/01)
Ma $ 9,790,080
Illinois-15.0%
8,500,000 Illinois Development Finance Authority(Columbus-Cuneo-Cabrini Medical Center),
8.500%,2/01/15
Illinois General Obligation: Baal 9,630,160
15,100,000 6.200%, 10/01/04
14,750,000 5.875%,6/01/10 AA— 16,613,624
1,680,000 Illinois Health Facilities Authority AA— 15,461,245
(Evangelical BushPresbyterian-St.
Hospital),Luke's,10/01/07 Aaa 1,744,058
Illinois Health Facilities Authority(Rush Presbyterian-St.Luke's Medical Center):
6,110,000 6.900%, 10/01/02
33,125,000 8.000%,8/01/25 Aa 6,109,084
12,420,000 Illinois Health Facilities Authority(LaGrange Hospital),7.625%, Aa 34,059,125
7/01/13(Pre-refunded to 7/01/96)
5,000,000 Illinois Health Facilities Authority(Evanston Hospital),9.750%,9/01/15 A 15,658,
8,500,000 Illinois Health Facilities Authority(Illinois Masonic Medical Center), 10.250%, AA 5,658,350
50
9/01/15(Pre-refunded to 9/01/95)
5,000,000 Illinois Health Facilities Authority(Highland A— 9,795,230
10,425,000 Illinois Independent Higher-Education an Authority
(Northwestern
wester University),
ners Aaa 5,283,000
8.000%,12/01/07 t3'(Northwestern
11,970,000 Illinois Sales Tax,6.000%,W15/18 AA- 12,109,889
Illinois Toll Highway Authority: AAA 12,313,180
42,900,000 7.375%,1/01/06(Pre-refunded to 1/01/96)
20,065,000 7.375%, 1/01/09(Pre-refunded to 1/01/96) Aaa 47,197,722
City of Chicago General Obligation: Aaa 22,075,112
4,900,000 9.000%,1/01/99(Pre-refunded to 7/01/95)
15,770,000 5.625%, 1/01/23 Aaa 5,480,111
22,545,000 Chicago Metropolitan Housing Development Corporation,6.900%,7/01/22 " aa AA 2 k 24,895,069
25,050,000 Chicago Mortgage Participation,7.200%, 11/01/09 5,555,509
11,805,000 Chicago O'Hare International Airport,8.750%, 1/01/16 AA
Al25,555,509
11,310,000 Chicago Single Family Mortgage,7.125%,7/01/09 12,265,867
AA+ 11,623,287
DuPage Water Commission GeneralObligation:
51,290,000 7.875%,3/01/11 (Pre-refunded to 3/01/96)
11,800,000 5.750%,3/01/11 Aaa 57,392,997
Aaa2,094,528
2,000,000 Hazel Crest(South Suburban Hospital),9.125%,7/01/17(Pre-refunded to 7/01/97) AAA 12,409,400
1,465,000 Joliet Residential Mortgage,7.500%,5/01/09
Authority AA 1,497,816
1,550,000 Metropolitan Pier&
Exposition (McCormick Place Expansion Project),
6.500%,6/15/27
910,000 Warrenviile Waterworks and Sewer ( ) A+ 1,653,835
780,000 Warrenvi0e Special Service Area General Obligation, 11.200%, /01/02 2 to 5/01/94 N 956,856
Zion Elderly Housing Corporation: Aaa 801,653
375,000 7.250%,3/01/98
1,705,000 . 7.750%,3/01/10 A 389,025
A 1,766,670
912497
Nuveen Tax-Free Value Funds Semiannual:Report
August 31,1993
PORTFOLIO OF INVESTMENTS
(Unaudited)
Municipal Bond-continued.
Principal Market
Amount Description Ratings* Value
Indiana-1.2%
$ 12,550,000 Indiana Office Building Commission,8.750%,7/01/12 (Pre-refunded to 7/01/97) Aaa $ 14,942,909
2,500,000 Indianapolis Local Public Improvement Bond Bank,6.750%,2/01/20 A+ 2,737,075
3,135,000 Indianapolis Resource Recovery(Ogden Martin),7.900%, 12/01/08 A 3,513,583
6,660,000 Evansville Hospital Authority(Daughters of Charity), 10.125%, 11/01/15 Aa 7,595,996
2,500,000 Southwind Housing,Inc.,7.125%, 11/15/21 AA 2,721,350
Iowa-0.2%
3,950,000 Iowa Housing Finance Authority,5.875°/q 8/01/08 Aal 4,016,242
Kentucky-2.6%
3,925,000 Kentucky Housing Corporation,7.250%,1/01/17 AAA 4,323,702
Kentucky Turnpike Authority:
9,86(1,000 8.000%,7/01/03 A+ 11,341,169
8,980,000 5.000%,7/01/08 A+ 8,877,448
34,500,000 Carroll County Pollution Control(Kentucky Utilities Company),7.450%,9/15/16 Aa2 41,250,615
Louisiana-1.9%
17,400,000 Louisiana Public Facilities Authority,Special Assessment,7.400%,9/01/97 Aa3 18,123,144
30,680,000 Lafayette Public Power Authority,6.125%, 11/01/12 A 31,400,980
Massachusetts-3.8%
46,670,000 Massachusetts General Obligation,4.700%,W01/02(WI) A 46,533,257
12,245,000 Massachusetts Housing Finance Agency(GNMA),9.125%, 12/01/20 Aaa 13,327,336
21,110,000 Massachusetts Municipal Wholesale Electric Company,6.125%,7/01/17 Baal 21,616,007
Massachusetts Water Resources Authority:
6,500,000 7.500%%4/01/16(Pre-refunded to 4/01/00) Aaa 7,742,215
9,500,000 6.000%q 4/01/20 A- 9,680,025
Michigan-4.5%
5,310,000 Michigan Housing Development Authority,6.750%,7/01/05 AA 5,417,740
10,000,000 Michigan Housing Development Authority,Rental Housing,6.600%,4/01/12 A+ 10,628,300
4,000,000 Michigan State Hospital Finance Authority(Henry Ford Hospital),7.500%,7/01/13
(Pre-refunded to 1/01/97) Aaa 4,519,400
Michigan State Hospital Finance Authority(St.John Hospital):
1,990,000 9.125%,12/01/02 (Pre-refunded to 12/01/95) Al 2,271,446
6,855,000 9.200%, 12/01/10 (Pre-refunded to 12/01/95) Al 7,835,539
41,500,000 Michigan State Hospital Finance Authority(Harper-Grace-and Huron Valley
Hospitals), 10.000%,10/01/16(Pre-refunded to 10/01/95) AAA 47,698,440
24,035,000 Detroit Convention Center(Cobo Hall),9.000%,9/30/10 A 26,244,778
5,000,000 Detroit Sewage Disposal System,8.250%,7/01/05(Pre-refunded to 7/01/97) A— 5,857,150
5,000,000 University of Michigan Hospital,6.625%, 12/01/10 AA 5,137,850
B 931249
Principal
Amount Description
Market
Minnesota-1.0% Ratings* Value
$ 2,920,000 Minnesota Housing Finance Agency,6.250%,2/01/20
14,420,000 Minneapolis Convention Center, 7.750%,4/01/11 (Pre-refunded to 4/01/96) Al $ 3,008,301
Aaa 16,
5,000,000 University of Minnesota,7.625%,2/01/05 , 8
AA 5,544,650
Missouri-1.1%
2,860,000 Missouri Environmental Improvement and Energy Resource Authority,Pollution
Control(Associated Electric Cooperative,Inc.),7.900%, 11/15/14 15,750,000 Missouri Health andEducational Facilities Authority Aa3 3,190,645
10/01/10 (Heartland Health),8.125%,
7,685,000 Missouri Housing Development Commission, 7.000%,9/15/22 BBB+ 17,609,918
AA 7,886,962
Nebraska-2.5%
17,815,000 Nebraska Public Power District,5.8000/0,1/01/13
44,015,000 Consumers Public Power District,5.100%,1/01/03 Al 17,999,742
2,860,000 Hall County Hospital Authority No. 1 (Sisters of Charity),6.750%, 12/01/07 Al 44,271,167
Aa 2,956,840
New Hampshire-0.4%
8,500,000 New Hampshire Industrial Development Authority,Pollution Control(Central Maine
Power Company),7.375%,5/01/14
Baa2 9,521,190
New Jersey-0.6%
10,750,000 New Jersey Housing and Mortgage Finance Agency,6.950%,11/01/13 2,905,000 New Jersey Turnpike Authority, 12.000%, 1/01/05(Pre-refunded to 1/01/94) AAA A+ 11,798,878
3
3,087,579
New York-7.0%
8,000,000 New York Local Government Assistance Corporation,7.000°/q 4/01/18
13,000,000 New York State Housing Finance Agency,Health Facilities(New York City),8.000%, A 9,488,560
11/01/08
13,390,000 New York State Mortgage Agency,6.875%,4/01/17 BBB+ 15,458,040
Municipal Assistance Corporation for the City of New York: 14,135,154
18,565,000 6.750%,7/01/06
15,520,000 7.750%,7/01/06 AA— 20,498,359
14,250,000 6.000%,7/01/08 AA— 17,679,763
23,435,000 7.250%,7/01/08 AA— 15,065,813
New York City General Obligation: AA— 25,773,110
24,685,000 6.700%,2/01/96
5,000,000 8.125%, 11/01/06 A- 26,083,158
19,170,000 6.375%,8/01/07 Aaa 5,795,200
9,000,000 6.625%,8/01/12 Aaa 21,158,504
Ana 10,079,820
931249
9
Nuveen Tax-Free Value Funds Semiannual Report
August 31,1993
PORTFOLIO OF INVESTMENTS
(Unaudited)
Municipal Bond-continued.
Principal Market
Amount Description Ratings* Value
North Carolina-3.4%
$ 17,290,000 North Carolina Eastern Municipal Power Agency,8.000%, 1/01/21 (Pre-refunded to Aaa $ 20,321,456
1/01/98)
North Carolina Municipal Power Agency No. 1 (Catawba):
9,505,000 8.625%, 1/01/99(Pre-refunded to 1/01/96) Aaa 10,715,937
13,880,000 9.000%, 1/01/14(Pre-refunded to 1/01/96) Aaa 15,817,370
20,080,000 8.500%,1/01/17 (Pre-refunded to 1/01/96) Aaa 22,664,898
17,310,000 7.500%, 1/01/19(Pre-refunded to 1/01/94) Aaa 17,576,401
Wilmington Housing Authority:
295,000 7.750%,6/01/98 AA 305,664
1,195,000 7.750%,6/01/10 AA 1,249,265
Ohio-0.3%
6,285,000 Ohio Building Authority(Correctional Facilities),9.100%, 10/01/04(Pre-refunded-to Aaa 7,181,995
10/01/95)
500,000 Ohio Building Authority(Toledo Center),9.100%, 10/01/04 A+ 567,200
Oklahoma-0.3% RBB+ 6,774,600
6,000,000 Comanche County Hospital Authority,8.050%,7/01/16
Pennsylvania-5.1%
Pennsylvania Housing Finance Agency:
4,025,000 8.100%,7/01/13 AAA 4,721,245
16,830,000 8.200%,7/01/24 AAA 20,011,880
14,000,000 Pennsylvania Housing Finance Agency,Rental Housing(FNMA),5.750%,7/01/14 Aaa 14,251,440
5,000,000 Allegheny County Hospital Development Authority(St.Francis Medical Center), Aaa 5,678,900
8.125%,6/01/13(Pre-refunded to 6/01/96)
10,450,000 Beaver County Industrial Development Authority,Pollution Control
(Duquesne Light Company), 11.625%q 12/01/14 Bang 11,797,946
7,000,000 Geisinger Health System,7.875%,7/01/04 AA 7,675,290
6,550,000 Monroeville Hospital Authority(Forbes Health System),9.700%,10/01/13(Pre-refunded to 10/01/95) AAA 7,489,205
ABA 9,330,969
9,300,000 Philadelphia Airport,6.200%,6/15/06
Philadelphia Water and Sewer:
5,100,000 7.600%,12/01/03 (Pre-refunded to 10/14/93) BBB 5,268,198
5,890,000 7.250%,7/01/14(Pre-refunded to 7/01/96) Con(Aaa) 6,567,998
7,000,000 7.000°/q 8/01/18 BBB 7,479,640
28,075,000 Philadelphia Hospitals andHigher Educational Facilities Authority(Pennsylvania Hospital),7.250%,7/01/14 A 30,449,584
Puerto Rico-0.8%
18,250,000 Puerto Rico Highway Transportation Authority,&500°/n,7/01/22(Pre-refunded to A 21,138,245
7/01/02)
10 921249
Principal Market
Amount Description Ratings* Value
Rhode Island-0.2%
$ 3,800,000 Rhode Island Housing and Mortgage Finance Corporation,8.875%,7/01/07 Al $ '3,926,598
South Carolina-0.2%
5,050,000 South Carolina Public Service Authority,6.000%,7/01/16 Al 5,130,245
Texas-4.1%
Austin Water,Sewer and Electric:
17,575,000 14.000%, 11/15/01 A 27,968,679
4,000,000 11.000%, 11/15/02(Pre-refunded to 5/15/97) A 4,973,640
Dallas-Fort Worth International Airport:
9,400,000 9.000%, 11/01/05 Al 10,659,130
8,125,000 9.125%, 11/01/15 Al 9,230,650
4,000,000 Dallas-Fort Worth Regional Airport Board, 10.200%, 11/01/04 Al 4,435,880
3,345,000 Houston Water and Sewer System,8.200%, 12/01/15 (Pre-refunded to 12/01/96) AAA 3,876,688
San Antonio Electric and Gas Systems:
5,000,000 8.000%,2/01/09(Pre-refunded to 2/01/98) Aaa 5,890,450
19,550,000 7.000%,2/01/14 Aal 20,491,635
3,500,000 8.000%,2/01/16(Pre-refunded to 2/01/98) Aaa 4,123,315
San Antonio Sewer System:
6,750,000 8.000%,5/01/10(Pre-refunded to 5/01/95) Aaa 7,383,015
5,615,000 7.900%,5/01/14(Pre-refunded to 5/01/97) Aaa 6,458,485
Utah-3.5%
Intermountain Power Agency:
9,000,000 10.250%,7/01/04 AA 10,246,680
6,345,000 10.000%,7/01/10 AA 7,196,118
32,080,000 7.875%,7/01/14 AA— 35,564,850
11,260,000 7.200%,7/01/19 AA— 12,378,343
3,200,000 9.625%,7/01/19 AA 3,593,184
18,225,000 7.000%,7/01/23(Pre-refunded to 7/01/95) AA 19,414,364
1,935,000 Layton Industrial Development(K-Mart),8.750%,6/01/05 A2 1,973,158
Vermont-0.1%
280,000 University ofVermont,Housing,Dining and Student Services,6.300%,7/01/06 AA— 286,868
Virginia-4.4%
Virginia Housing Development Authority:
19,080,000 5.550%,5/01/08 AA 19,572,836
28,075,000 5.900%,5/01/14 AA 28,762,557
3,275,000 -6.700%,11/01/21 AA 3,340,795
47,000,000 7.150%,1/01/33 Aa 51,007,690
6,240,000 Chesapeake Hospital Authority(Chesapeake General Hospital),7.625%,7/01/18
(Pre-refunded to 7/01/98) Aaa 7,315,651
9x1249 it
,-ca..em;annua!deport
August 31,1993
PORTFOLIO OF INVESTMENTS
(Unaudited)
Municipal Bond-continued.
Principal
Amount Description Market
Virginia-continued Ratings* Value
$ 1,345,001) Chesepeake Industrial Development Authority(Camelot Hall Nursing Home),
7.500%,9/01/01
1,875,000 Richmond Metropolitan Authority,5.600% 1/15/13 N/R $ 1,348,376
Al 1,915,631
Washington-5.7%
Washington Public Power Supply System,Nuclear Project No. 1:
14,260,000 7.000%,7/01/07 1
7,805,000 7.000°/n,7/01/09 AA 16,491,975
18,500,000 5.750%,7/01/13(DD) AA 9,013,136
5,000,000 7.125%,7/01/16 AA 1 6,687,980
5,570,000 5.875%,7/01/17 AA 6 5,654,887
,300,
Washington Public Power Supply System,Nuclear Project No.3:
2,095,000 15.000%, 7/01/18(Pre-refunded to 7/01/96)
18,085,000 5.800%, 7/01/18 Aaa 2,784,610
Chelan County Public Utility District No.1: AA 18,174,340
35,438,000 5.000%,7/01/13
6,215,000 5.125% 7/01/23 Al 35,390,866
16,410,000 Columbia Storage Power Exchange,3.875%,4/01/03 A+ 6,219,163
10,150,000 Metropolitan Seattle Sewer,7.400%, 1/01/16AA 16,432,810
(Pre-refunded to 1/01/96) AA— 11,242,545
Wisconsin-1.3%
640,000 Wisconsin General Obligation,9.500°/n, 1/01/09
Wisconsin Housing and Economic Development Authority: AA 682,405
4,930,000 9.875%, 11/01/03
5,705,000 10.000%,11/01/10 Al 5,060,398
4,500,000 5.800°/n,6/01/17 Al 5,833,362
3,500,000 7.0000/0,11/01/19 AA 4,745,025
8,500,000 7.050%,11/01/22 Al 3,516,975
Al 4,815,000 Sheboygan Pollution Control(Wisconsin Electric Power Company),9.750%,9/15/15 AA+ 5,540,475
$2,314,165,751 Total Investments(cost$2,311,191,029)-97.9% 5,540,475
2,518,980,010
7,000,000 Temporary Investments.in Short-Term Municipal Securities-2.2%
Apache County Industrial Development PCR(Tucson Electric),Variable Rate
Demand Bonds,2.700%, 10/01/211-
5,000,000 Birmingham Medical Clinic Board(University of Alabama Health Services VMIGI 7,000,000
Foundation),Variable Rate Demand Bonds,2.4500/o,6,000,000 Chattanooga-Hamilton Counties H Hospital Authority(Erlanger�Medical Center),
A-1+ 5,000,000
Variable Rate Demand Bonds,2.450%, 10/01/17t
17,000,000 Chicago O'Hare International Airport (American Airlines),Series 83A,Variable Rate A-1 6,000,000
Demand Bonds,2.850%, 12/01/17t
7,000,000 Delaware County Industrial Development Authority,Airport Facility(UPS),Variable P-2 17,000,000
Rate Demand Bonds,2.500%, 12/01/15f
7,400,000 Houston Health FacilitiesDevelopment(Methodist Hospital),Variable Rate Demand A-1+ 7,000,000
Bonds,2.450%,12/01/21t
A-1+ 7,400,000
12
9;31.249
Principal Market
Amount Description Ratings* Value
$ 7,700,000 Monroe County Economic Development Corporation,Pollution Control(The Detroit
Edison Company),Variable Rate Demand Bonds,2.450%, 10/01/2O VMIG-1 $ 7,700,000
$ 57,100,000 Total Temporary Investments-2.2% 57,100,000
Other Assets Less Liabilities-(0.1)% (4,095,118)
Net Assets- 100% $2,571,984,892
Number of
Standard&Poor's Moody's Issues Market Value Percent
Summary of Ratings* AAA Ma 52 $ 670,751,694 27%
Portfolio of AA+,AA,AA— Aal,Aa,Aa2,Aa3 72 1,028,768,267 41
Investments(excluding A+ Al 28 306,053,362 12
temporary investments): A,A— A,A2,A3 22 310,615,552 12
BBB+,BBB,BBB— Baal,Boa,Baal,Baa3 18 174,479,165 7
Non-rated Non-rated 5 28,311,970 1
Total 197 $2,518,980,010 100%
* Ratings:
Using the higher of Standard&Poor's or Moody's rating.
N/R-Investment is not rated.
t The security has a maturity of more than one year,but has variable rate and demand features which qualify it as a short-term
security.The ratedisclosed is that currently in effect.This rate changes periodically based on market conditions or a specified
market index.
Con. Rating is conditional.Bonds for which the security depends upon the completion of some act or the fulfillment of some
condition are rated conditionally.These are bonds secured by(a)earnings by projects under construction, (b)earnings of
projects unseasoned in operation experience,(c)rentals-which begin when facilities are completed,or(d)payments to which
some other limiting conditions attaches.Parenthetical rating denotes probable credit stature upon completion of construction
or elimination of basis of condition.
(WI) Security purchased on a when-issued basis(note 1).
(DD) Portion of security purchased on a delayed delivery basis(note 1).
See accompanying notes to financial statements.
921249 13
Nuveen Tax-Free Value Funds Semiannual Report
August 31.1993
PORTFOLIO OF INVESTMENTS
(Unaudited)
INSURED MUNICIPAL BOND
Market
Principal Ratings* Value
Amount Description
Alabama-4.1°k $ 2,363,630
$ 2,120,000 Albertville Water Supply Board,Water Revenue,6.700%,3/01/11 Aa Maa 2,670,000
2,500,000 Athens,Water and Sewer Revenue,6.100%,8/01/18 Ma
5,265,000 Auburn Government Utility Services Corporation,Wastewater Treatment-Revenue, Aaa 5,905,698
7.300%, 1/01/12 Ate, 5,905,698
3,740,000 Auburn Water Works Board,Water Revenue,5.750%,9/01/22
1,875,000 Birmingham Special Care Facilities Financing Authority(Baptist Medical Center), Ma 2,094,394
7.000%, 1/01/21
Daphne Utilities Board,Water,Gasand Sewer Revenue: Aaa 1,469,254
1,255,000 7.350%,6/01/20(Pre-refunded to 6/01/00) Aaa 1,469,,254
1,225,000 7.350%,6/01/20 Aaa 1,414,018
3,000-;000 Mobile County General Obligation,6.700%;2/01/11 2,697,074
2,375,000 Muscle Shoals Utilities Board,Water and Sewer System Revenue,7.250%,4/01/17 Aaa
2,500,000 West Jefferson Industrial Development Board,Pollution Control Revenue(Alabama Aaa 2,584,075
Power Company),6.050%,5/01/23
Alaska-0.5% Aaa 3,758,861
3,605,000 Anchorage General Obligation,6.250%,6/01/23
Arizona-0.1% 571,175
500,000 Peoria Municipal Development Authority,Municipal Facilities Revenue,7.000%,7/01/10. Aaa
Arkansas-0.3%
North Little Rock,Electric System Revenue: Ma 1,153,730
1,000,000 6.500°/a,7/01/10 a 1,153,730
1,000,000 6.500%,7/01/15
California-7.6%
Brea Public Financing Authority,Tax Allocation: Aaa 4,155,799
3,525,000 7.000%,8/01/15(Pre-refunded to 8/01/01) Ate, 4,155,799
1,475,000 7.000%,8/01/15 Aaa 1,695,203
5,000,000 Brea Redevelopment Agency,Tax Allocation,5.730%,8/01/23 Ann 1,542,000
1,500,000 Contra Costa Water Authority,5.750%, 10/01/20
2,000,000 East-Bay Municipal Utility District,Water System Subordinated Revenue,7.500°%, Aaa 2,401,340
6/01/18(Pre-refunded to 6/01/00)
Lancaster Redevelopment Agency,Tax Allocation: Aaa 2,674,250
2,500,000 6.100%,8/01/19 Aaa 2,674,250
2,500,000 5.800%,8/01/23 2,578,025
5,000,000 Los Angeles Convention and Exhibition Center Authority,5.375°/a,8/15/18(WI) A�
Los Angeles Wastewater System Revenue: Aaa 2,021,443
1,750,000 7.100%,2/01/21 (Pre-refunded to 2/01/99) Aaa 2,021,443
9,570,000 5.800%,6/01/21 Aaa 9,890,404
3,000,000 5.700%,6/01/23
14 9u1249
Principal Market
Amount Description Ratings' Value
California-continued
$ 4,500,000 Los Angeles County Metropolitan Transportation Authority,Sales Tax Revenue,5.625%,
7/01/18 Aaa $ 4,579,380
2,000,000 M-S-R Public Power Agency,San Juan Project Revenue,6.000%,7/01/2O- Aaa 2,139,880
2,500,000 Oakland General Obligation,6.000%,6/15/22 Ma 2,663,325
2,250,000 Sacramento Municipal Utility District,Electric System Revenue,6.500%,9/01/21 Aaa 2,494,305
Colorado-3.0%
1,250,000 Colorado State Board of Agriculture(Colorado State University Auxiliary Facilities),
6.400%,3/01/17 Aaa 1,379,100
3,300,000 Arvada Sales and Use Tax Revenue,6.250%,12/01/17 Aaa 3,614,952
1,000,000 St.Vratn Valley School District No.RE-1J(Boulder Larimer&Weld Counties),General
Obligation,6.000%, 12/15/10 Aaa 1,079,810
2,000,000 Broomfield Sales and Use Tax Revenue,6.300%, 12/01/14 Ma 2,198,240
4,500,000 Denver.Beard of Water Commissioners Certificates of Participation,6.625%,11/15/11 Aaa 5,007,150
1,000,000 City and County of Denver,Excise Tax Revenue,6.500%,9/01/14 Ma 1,072,640
3,500,000 Jefferson County Equipment Lease Certificates of Participation,6.650%, 12/01/08 Am 4,029,550
2,000,000 La Plata County School District 9-R General Obligation,6.600%,11/01/17 Aaa 2,256,560
Connecticut-02%
1,000,000 South Central Connecticut Regional Water Authority,5.750%,8/01/12 Ana 1,049,250
Delaware-9.6%
3,600,000 Delaware Economic Development Authority,Pollution Control Revenue(Delmarva
Power and Light Co.),6.750%,5/01/19 Am 4,071,672
District of Columbia-12%
District of Columbia General Obligation:
2,500,000 7.500%,6/01/09(Pre-refunded to 6/01/99) Aaa 2,960,900
2,500,000 7.500%,6/01/10 (Pre-refunded to 6/01/00) Aaa 2,995,100
2,000,000 District of Columbia(American College of Obstetricians and Gynecologists),6.500%,
8/15/18 Aaa 2,168,200
Florida-1.1%
55,000 Florida Housing Finance Agency,Residential Mortgage Revenue,9.125%, 12/15/16 Aaa 58,324
Florida Keys Aqueduct Authority,Water Revenue:
920,000 6.750%,9/01/21 (Pre-refunded to 9/01/01) Aaa 1,059,536
80,000 6.750%,9/01/21 Aaa 89,902
1,885,000 Brevard County Utility Revenue,7.375%,3/01/14 Aaa 2,145,978
1,500,000 Manatee County Community Redevelopment Revenue(Administration Center Project),
6.750%,4/01/17 Aaa 1,670,865
2,405,000 South-Broward Hospital District,7.500%,5/01/08 _ Aaa 2,854,182
921249 15
Nuveen Tax-Free Value Funds Semiannual Report
August 31,1993
PORTFOLIO OF INVESTMENTS
(Unaudited)
Insured Municipal Bond - continued.
Principal Market
Amount Description Ratings* Value
Georgia-2.8%
$ 5,000,000 Albany Sewerage System Revenue,6.625%,7/01/17 Aaa $ 5,627,100
1,000,000 Atlanta Board of Education Certificates of Participation,7.125%,6/01/12 Aaa 1,149,620
2,250,000 Chatham County Hospital Authority(Savannah Memorial Medical Center),7.000%,
1/01/21 Aaa 2,575,485
2,940,000 Cobb-Marietta Coliseum-and Exhibition Authority,5.625%, 10/01/26 Aaa 3,073,976
2,000,000 Columbus Water and Sewerage System Revenue,5.700%,5/01/20 Aaa 2,054,620
2,500,000 -Fulton-DeKalb Hospital Authority(Grady.Memorial),5.5000/0, 1/01/20 Aaa 2,492,850
2,355,000 South Georgia Hospital Authority,7.800%,5/01/16 Aaa 2,482,853
Illinois-9.9%
Illinois Health Facilities Authority(Elmhurst Memorial Hospital):
2,000,000 8.125%,1/01/13 (Pre-refunded to 1/01/97) Al 2,297,380
3,000,000 6.625%,1/01/22 Aaa 3,297,060
6,855,000 Illinois Health Facilities Authority(Methodist Health Services),8.000%,8/01/15 Aaa 8,132,498
2,100,000 Illinois Health Facilities Authority(Ingalls Health System),7.000%, 1/01/19 Aaa 2,375,730
1,483,000 Illinois Health Facilities Authority(Community Provider Pooled Loan Program),7.900%,
8/15/03 Aaa 1,646,566
3,000,000 Illinois Health Facilities Authority(Sherman Hospital),6.750%,8/01/21 Aaa 3,315,660
9,205,000 Illinois State Toll Highway Authority,Priority Revenue,6.200%, 1/01/16 Aaa 9,790,070
1,000,000 Aurora General Obligation,7.250%, 1/01/19(Pm-refunded to 1/01/99) Aaa 1,153,350
2,500,000 Chicago General Obligation(Central Public Library Project),6.850%, 1/01/17 Aaa 2,779,700
5,000,000 Chicago General Obligation,6.250%, 1/01/12 Aaa 5,361,350
1,500,000 Chicago Building Commission(Community College District No.508),7.700%, 1/01/08 An 1,717,635
5,000,000 Chicago Public Building Commission(Board of Education),5.7510/0, 12/01/18 Aaa 5,100,900
4,200,000 Chicago Wastewater Transmission Revenue,7.200%, 11/15/19(Pre-refunded to
11/15/99) Ana 4,949,070
2,000,000 _Cook County General Obligation,6.500%, 11/15/10 Aaa 2,213,020
2,500,000 Community College District No.508(Cook County),8.750%, 1/01/07 Aaa 3,351,375
1,000,000 Dolton General Obligation, 7.125%, 12/01/15 Aaa 1,155,010
Narthlake General Obligation:
4,000,000 6.250%, 12/01/11 Aaa 4,287,280
3,000,000 6.375%, 12/01/12 Aaa 3,265,050
1,575,000 Onterie Center Housing Finance Corporation,Mortgage Revenue(FHA-Insured),
7.0000/o,7/01/12 Aaa 1,711,600
Indiana-7.9%
5,000,000 Indiana Health Facilities Financing Authority(Community Hospitals),6.400%,5/01/12 Ana 5,417,800
Indiana Municipal Power Agency,Power Supply System Revenue:
1,000,000 7.100%,1/01/15(Pre-refunded to 1/01/00) Aaa 1,167,760
5,000,000 6.125%,1/01/19 Aaa 5,308,200
3,750,000 Indianapolis Gas Utility System Revenue,6.200%,6/01/23 Aaa 4,029,825
16 9a1249
Principal Market
Amount Description Ratings* Value
Indiana-continued
$ 4,950,000 Jasper County Pollution Control Revenue(Northern Indiana Public Service Company),
7.100%,7/01/17 Aaa $ 5,690,619
2,000,000 Lawrence Central High School Building Corporation,First Mortgage Revenue,7.250%,
7/01/08 Aaa 2,288,600
Marion County Convention and Recreational Facilities Authority,Excise Tax,Lease
Rental Revenue:
3,300,000 7.000%;8/01/21 (Pre-refunded to 6/01/01) Aaa 3,883,572
500,000 7.000%,6/01/21 Aas 572,450
2,250,000 Monroe County Hospital Authority(Bloomington Hospital),7.125%,5/01/11 Aaa 2,519,100
1,000,000 Princeton Pollution Control Revenue(Public Service Company of Indiana),7.375%,
3/15/12 Aaa 1,128,760
1,800,000 Randolph County Jail Building Corporation,First Mortgage Revenue,6.250%,8/01/13 Aaa 1,936,206
4,000,000 Richmond Hospital Authority(Reid Hospital&Health Care),6.250%,1/01/12 Aaa 4,269,440
St.Joseph County Hospital Authority(Memorial Hospital of South Bend):
2,000,000 7.000%,8/15/20 Ma 2,264,240
2,500,000 6.250%,8/15/22 Aaa 2,662,075
2,190,000 Shelby County Jail Building Corporation,First Mortgage Revenue,6.500%,7/15/09 Aaa 2,383,530
4,000,000 South Bend Community School Building Corporation,First Mortgage Revenue,7.000%,
1/15/11 Aaa 4,460,520
1,380,000 South Bend Community School Corporation,Edison School Building.Corporation,First
Mortgage Revenue,6.650%, 1/15/14 Aaa 1,479,457
2,265,000 Southwest Allen Multi-School Building Corporation,First Mortgage Revenue,6.375%,
1/15/09 Aaa 2,464,773
Iowa-0.2%
1,000,000 Polk County Insured Health Facilities Revenue(Mercy Health Center of Central Iowa),
0.750%,11/01/15 Aaa 1,095,950
Kansas-0.7%
3,500,000 Burlington Pollution Control(Kansas Gas and Electric Company),7.000%,6/01/31 Aaa 3,990,105
1,000,000 Wichita Water and Sewer System Revenue,6.000%, 10/01/12 Aaa 1,056,840
Kentucky-0.3%
1,000,000 Louisville and Jefferson Counties,Metropolitan Sewer District, Drainage Revenue,
7.350%,5/01/19(Pre-refunded to 5/01/00) Aaa 1,191,410
1,000,000 Louisville and Jefferson Counties,Metropolitan Sewer District Revenue,7.000%,5/01/09
(Pre-refunded to 5/01/99) Aaa 1,155,610
Louisiana-4.2%
Louisiana General Obligation:
5,000,000 6.5000/0,5/01/09 Aaa 5,545,850
2,000,000 6.500%,5/01/12 Aaa 2,190,280
1,700,000 Louisiana Public Facilities Authority(Our Lady of Lourdes Regional Medical Center),
6.450%,2/01/22 Aaa 1,842,086
94'1,1249 17
Naveen Tax-Free Value Funds Semiannual Report
August 31,1993
PORTFOLIO OF INVESTMENTS
(Unaudited)
Insured Municipal Bond - continued.
Principal Market
Amount Description Ratings* Value
Louisiana-continued
$ 7,000,000 Louisiana Public Facilities Authority(Southern Baptist Hospital),6.800%,5/15/12 Ma $ 7,823,130
1,960,000 Louisiana Public Facilities Authority(West Jefferson Medical Center),7.900%,1W01/15. Ma 2,314,505
250,000 Louisiana Public Facilities Authority(Alton Ochsner Medical Foundation),6.500%,
5/15/22 Aaa 273,665
3,000,000 New Orleans Audubon Park Commission,Aquarium Special Tax,6.000%, 10/01/17 Aaa 3,168,960
5,500,000 Shreveport Water and Sewer Revenue,asso%, 12/01/14 Ma 5,770,435
Maine-0.2%
Old Orchard Beach General Obligation:
750,000 6.650%,9/01/09 Aaa 863,910
500,000 6.650%,9/01/10 Ma 573,755
Maryland-0.4%
1,000,000 Morgan State University,Academic and Auxiliary Fees Revenue,7.000%,7/01/20(Pre-
refunded to 7/01/00) Aaa 1,170,010
500,000 Prince George's County Housing Authority(New Keystone Apartments-FHA Insured),
6.800%,7/01/25 Asa 538,395
1,000,000 Prince George's County Industrial Development Authority,Lease Revenue(Upper
Marlboro Justice Center Project),7.000%,W30/19(Pre-refunded to 6/30/99) Aaa 1,159,140
Massachusetts-4.9%
Commonwealth of Massachusetts General Obligation:
670,000 7.250%,3/01/09(Pre-refunded to 3/01/00) Alta 791,618
330,000 7.250%,3/01/09 Ma 388,875
2,000,000 7.000%,6/01/09 Ma 2,314,760
2,500,000 Massachusetts Bay Transportation Authority,7.100%,-3/01/13 Aaa 2,855,350
1,250,000 Massachusetts Bay Transportation Authority Certificates of Participation,7.650%,
8/01/15 Aaa 1,482,825
2,000,000 Massachusetts Health and Educational Facilities Authority(Capital Asset Program),
7.300%,10/01/18 Aaa 2,317,160
3,400,000 Massachusetts Health and Educational Facilities Authority(New England Medical
Center),6.625%,7/01/25 Aaa 3,795,420
4,000,000 Massachusetts Health-and Educational Facilities Authority(South Shore Hospital),
6.500%,7/01/22 Ana 4,418,040
2,000,000 Massachusetts Health and Educational Facilities Authority(Massachusetts General
Hospital),6.250%,7/01/20 Aaa 2,170,740
1,000,000 Massachusetts Health and Educational Facilities Authority(Falmouth Hospital),
5.625%,7/01/11 Aaa 1,034,440
2,500,000 Massachusetts Housing Finance Agency,Housing Project Revenue,6.150%, 10/01/15 Aaa 2,610,425
3,660,000 Massachusetts Turnpike Authority Revenue,5.125%,1/01/23 Aaa 3,564,877
3,500,000 Boston City Hospital Revenue(FHA-Insured Mortgage),7.625%,2/15/21 (Pre-refunded
to W15/00) Aaa 4,238,115
1,150,000 Haverhill General Obligation,7.000%,6/15/12 Ma 1,342,901
18
9'1249
Principal Market
Amount Description Ratings* Value
Michigan-4.7%
$ 2,900,000 Michigan State Hospital Finance Authority(Henry Ford Health System),5.750%,
9/01/17 Aaa $ 2,978,503
2,000,000 Michigan Strategic Fund(The Detroit Edison Company),6.875%, 12/01/21 Aaa 2,262,820
12,130,000 Bay City General Obligation,Unlimited Tax,0.000°/a,6/01/21 Aaa 2488,712
5,000,000 Caledonia Community Schools General Obligation,6.700%,5/01/22(Pre-refunded to
5/01/02) Aaa 5,845,850
2,000,000 Detroit Sewage Disposal System Revenue,6-..625%,7/01/21 Ma 2,224,460
2,000,000 Grand Rapids Water Supply System Revenue,6.500%, 1/01/15 Aaa 2,200,840
2,250,000 Grand Traverse County Hospital Finance Authority(Munson Healthcare),6.250%,
7/01/22 Aaa 2,426,175
7,000,000 Livonia Public School District General Obligation,Unlimited Tax,5.500%,5/01/21 (WI) Aaa 7,029,330
5,000,000 River Rouge School District,Unlimited Tax,5.625%,5/01/22 Aaa 5,138,050
Mississippi-0.1%
500,000 Jackson County Gautier Utility District,7.875%,3/01/19(Pre-refunded to 8/01/99) Aaa 599,000
Missouri-0.6%
1,500,000 Missouri Health and Educational Facilities Authority,Health Facilities Revenue
(Heartland Health Systems Project),6.350%, 11/15/17 Arta 1,644,615
750,000 Jefferson County Public Water District No.2,Water Supply System Revenue,6.100%,
1/01/17 Aaa 809,183
1,000,000 Kansas City School District Building Corporation,Leasehold Revenue,7.900%,2/01/08
(Pre-refunded to 2/01/98) Aaa 1,172,310
500,000 Liberty Waterworks System Revenue,6.300%, 10/01/12 Aaa 541,265
Nebraska-0.2%
1,500,000 Lancaster County Hospital Authority(Bryan Memorial Hospital),6.700%,6/01/22 Aaa 1,698,240
Nevada-2.2%
6,000,000 Clark County(Las Vegas-McCarran-International Airport),Passenger Faeality
Revenue,6.000/s,7/01/22 Ma 6,231,900
2,500,000 Clark County School District General Obligation,6.750%,3/01/08 Aaa 2,779,800
4,555,000 Reno insured Hospital Revenue(St.Mary's Regional_Medical Center),5.025%,5/15/23 Ma 4,587,523
1,160,000 University of Nevada,University System Revenue,7.125%,7/01/16 Aaa 1,329,279
New Hampshire-0.6%
New Hampshire Higher Educational and Health-Facilities Authority,University System
Revenue:
1,000,000 7.625%,7/01/20(Pre-refunded to 7/01/99) Ma 1,193,480
2,850,000 6.250%,7/01/20 Aaa 3,044,057
New Jersey-0.5%
1,480,000 NewJersey Housing and Mortgage Finance Agency,Home Mortgage Purchase Revenue,
8.100%,10/01/17 Ma 1,576,940
2,070,000 Pennsauken Township Housing Finance Corporation,8.000%,4/01/11 Aaa 2,194,076
9a1249 is
Nuveen Tax-Free Value Funds Semiannual Report
August 31,1993
PORTFOLIO OF INVESTMENTS
(Unaudited)
Insured Municipal Bond - continued.
Principal Market
Amount Description Ratings' Value
New Mexico-1.1%
New Mexico Mortgage Finance Authority,Single Family Mortgage:
$ 750,000 8.500%,7/01/07 Aaa $ 818,745
750,000 8.625%,7/01/17 Aaa 800,708
3,000,000 Albuquerque Hospital System Revenue(Presbyterian Healthcare Services),
6.600%,8/01/07 Aaa 3,219,210
2,495,000 Farmington Pollution Control Revenue(Public Service Company of New Mexico),
6.375%,12/15/22 Aaa 2,733,697
New York-12.3%
1,000,000 Dormitory Authority of the State of New York,Educational Facilities Revenue(State
University),7.700/x,5/15/12(Pre-refunded to 5/15/00) Baal 1,214,340
3,000,000 Dormitory Authority of the State of New York,Consolidated Revenue(City University),
5.750%,7/01/18 Aaa 3,245,970
New York State Medical Care Facilities Finance Agency,Mental Health Services
Facilities Improvement Revenue:
2,000,000 6.375%,8/15/17 Aaa 2,195,060
6,820,000 5.900%,8/15/22 Aaa 7,179,687
1,500,000 New York State Urban Development Corporation,Section 236 Revenue,
6.750%,1/01/26 Aaa 1,690,260
Metropolitan Transportation Authority,Commuter Facilities Revenue:
4,955,000 6.250%,7/01/17 Aaa 5,409,968
7,425,000 6.250/,7/01/22 Aaa 8,106,764
4,825,000 Nassau County General Obligation,6.000%, 11/15/95 Ma 5,089,072
New York City General Obligation:
6,000,000 6.625%,W01/12 Aaa 6,719,880
3,510,000 6.000%,5/15/16 Ma 3,728,182
1,000,000 7.000%,W01/17 Ma 1,176,620
3,750,000 7.000%,2/01/18 An 4,339,125
1,000,000 7.000%,8/01/18 Ma 1,176-,620
2,500,000 New York City Health and Hospitals Corporation,Health System Revenue,
5.750%,2/15/22 Aaa 2,597,750
New York City Municipal Water Finance Authority,Water and Sewer System Revenue:
6,180,000 6.750%,6/15/14 Ma 6,845,957
6,330,000 6.750%,6/15/16 An 7,054,027
7,620,000 5.750%,6/15/18 An 7,917,256
1,915,000 6.500%,6/15/21 Aaa 2,073,945
1,000,000 New York City Transit Authority,Transit Facilities Revenue(Livingston Plaza Project),
7.500%,1101/20(Pre-refunded to 1/01/00) An 1,192,180
5,240,000 Triborough Bridge and Tunnel Authority,Special Obligation,6.875%,1/01/15 An 5,940,640
North Carolina-0.4%
2,500,000 Charlotte Convention Facility Certificates of Participation,5.250%, 12/01/20 Aaa 2,446,575
.
9,31249
Principal Market
Amount Description Ratings* Value
North Dakota-02%
$ 1,000,000 Mercer County Pollution Control Revenue(Montana-Dakota Utilities Company),
6.650%,6/01/22 Ma $ 1,111,300
Ohio-1.3%
1,000,000 Columbus City School District General Obligation,Unlimited Tax,7.000%, 12/01/11 (Pre-
refunded to 12/01/00) Aaa 1,175,760
2,500,000 Dublin City School District General Obligation,6.200%,12/01/19 Aaa 2,717,300
1,000,000 Greene County Water System Revenue,6.850%, 12/01/11 Aaa 1,141,390
2,500,000 Lake County Hospital Facilities Revenue,5.500%,-8/15/20 Aaa 2,526,100
1,000,000 Zanesville General Obligation,Limited Tax,5.750%, 12/01/18 Aaa 1,047,160
Oklahoma-0.1%
700,000 Muskogee County Home Finance Authority,Single Family Mortgage Revenue,7.600%,
12/01/10 Aaa 760,935
Pennsylvania-3.1%
1,000,000 Carmichaels Area School District General Obligation,7.200°/°, 1/01/20(Pre-refunded to
1/01/98) Asa 1,120,590
5,000,000 Lehigh County General Purpose Authority,Hospital Revenue(St.Luke's Hospital of
Bethlehem),6.250%,7/01/22 Aaa 5,378,700
2,000,000 Lehigh County Industrial Development Authority,Pollution Control Revenue
(Pennsylvania Power&Light Company),6.400%, 11/01/21 Aaa 2,179,620
500,000 Northampton County Higher Educational Authority(Moravian College),7.150%,6/01/09 Ma 560,325
1,000,000 Northampton County Higher Educational Authority(Lehigh University),7.000%,
10/15/11 Aaa 1,160,070
5,000,000 Philadelphia Water and Wastewater System,5.500°/a,6/15/14 Asa 4,968,900
3,900,000 Philadelphia Municipal Authority(Justice Lease),7.125°/a, 11/15/18(Pre-refunded to
11115/01) Aaa 4,664,556
1,000,000 Washington County Hospital Authority,Hospital Revenue Refunding,7.150%,7/01/17 Ana 1,140,460
Puerto Rico-0.6%
3,750,000 Commonwealth of Puerto Rico General Obligation,6.600%,7/01/13(Pre-refunded to
7/01/02) Ma 4,365,375
Rhode Island-2.7%
Rhode Island Depositors Economic Protection Corporation:
3,750,000 6.000%,8/01/17 Aaa 3,928,800
2,250,000 6.625%,8/01/19(Pre-refunded to 8/01/02) Asa 2,602,890
1,000,000 7.250%,8/01/21 (Pre-refunded to 8/01/96) Aaa 1,121,730
6,255,000 Rhode Island Health and Educational Building Corporation(Higher Education Auxiliary
Enterprise Revenue),5.250%,9/15/23 Aaa 6,036,831
4,000,000 Cranston General Obligation,7.200%,7/15/11 (Pre-refunded to 7/15/01) Aaa 4,780,640
9.31249 2,
Nuveen Tax-Free Value Funds Semiannual Report
August 31,1993
PORTFOLIO OF INVESTMENTS
(Unaudited)
Insured Municipal Bond - continued.
Principal Market
Amount Description Ratings* Value
South Carolina-0.8%
$ 1,000,000 Aiken Water and Sewer System Revenue,7.250%, 1/01/14 Ma $ 1,143,600
Rock Hill Combined Utility System Revenue:
2,000,000 6.375%, 1/01/15 Aaa 2,183,120
2,000,000 7.000%,1/01/20(Pre-refunded to 1/01/00) Aaa 2,320,920
South Dakota-0.4%
1,500,000 South Dakota Building Authority Certificates of Participation,7.250%,9/01/13 Aaa 1,690,260
1,000,000 South Dakota Healtlrand Educational Facilities Authority(McKennan Hospital),
7.250%,7/01/15 Aaa 1,134,320
Tennessee-1.3%
2,000,000 Chattanooga-Hamilton County Hospital Authority(Erlanger Medical Center),5.625%,
10/01/18 Aaa 2,034,100
2,125,000 Memphis-Shelby County Airport Authority,5.650%,9/01/15 Ma 2,167,691
3,000,000 Metropolitan Nashville Airport Authority,Airport Improvement Revenue,6.600%,
7/01/15 Aaa 3,317,460
1,000,000 Robertson and Sumner Counties White House Utility District,Water Revenue,6.375%,
1/01/22 Aaa 1,088,750
Texas-4.8%
6,080,000 Texas Health Facilities Development Corporation,Hospital Revenue(All Saints
Episcopal Hospitals of Fort Worth),6.250%,8/15/22 Aaa 6,525,056
930,000 Texas Housing Agency,Single Family Mortgage Revenue,7.875%,9/01/17 Aa 1,007,729
1,000,000 Austin Hotel Occupancy Tax Revenue,6.750%,11/15/14 Ma 1,097,420
130,000 Bell County Housing Finance Corporation,Single Family Mortgage Revenue,9.200%,
12/01/10 Aaa 134,304
3,000,000 Brownsville Utilities System Priority Revenue,6.875%,9/01/20 Aaa 3,309,330
5,500,000 Harris County Toll Road,Senior Lien,6.500%,8/15/17 Ma 6,046,810
1,000,000 Harris County Hospital District,7.400%,2/15/10 Aaa 1,238,710
500,000 Houston Hotel Occupancy Tax and Parking Facilities Revenue,7.000%,7/01/15 Ma 570,370
4,820,000 Houston Water and Sewer System,Junior Lien,6.375%, 12/01/17 Ma 5,221,217
2,000,000 Lower Colorado River Authority,Priority-Refunding Revenue,7.000%, 1/01/11 Aaa 2,292,000
5,000,000 Tarrant County Health Facilities Development Corporation,Hospital Revenue(Fort
Worth Osteopathic Hospital),6,000%,5/15/21 Aaa 5,447,100
Utah-0.8%
940,000 Utah Housing Finance Agency,Single Family Mortgage Revenue,8.375%,7/01/19 AA 1,034,555
Provo City Energy System Revenue:
2,300,000 5.500%, 11/15/11 Aaa 2,327,485
500,000 5.750°/x,5/15/14 Aaa -512,365
1,500,000 West Valley City Municipal Building Authority,Lease Revenue,7.700°/n, 1/15/10
(Pre-refunded to 1/15/99) Ma 1,777,215
22 9 .A.044^114.,
Principal Market
Amount Description Ratings* Value
Virginia-0.8%
$ 1,000,000 Fairfax County Sewer Revenue,7.000%, 11/15/16(Pre-refunded to 11/15/99) Aaa $ 1,166,920
2,860,000 Richmond Metropolitan Authority,Expressway Revenue,5.750%,7/15/22 Aaa 2,934,646
1,050,000 Roanoke County Water System Revenue,6.000%,7/01/31 Aaa 1,097,891
Washington-0.7%
2,750,000 Washington Health Care Facilities Authority(Group Health Cooperative of Puget
Sound),6.250%,12/01/21 Asa 2,918,108
5,000,000 Washington Health Care Facilities Authority(Swedish Hospital Medical Center of
Seattle),6.300%, 11/15/22 Aaa 5,348,000
Washington Public Power Supply System,Nuclear Project No. 1:
5,000,000 8.250%,7/01/17 Aaa 5,340,450
3,000,000 5.700%,7/01/17 Aaa 3,046,170
2,500,000 Washington Public Power Supply System,Nuclear Project No.3,7.250%,7/01/16 Ma 2,880,625
1,000,000 Marysville Water and Sewer Revenue,7.000%, 12/01/11(Pre-refunded to 12/01/03) Aaa 1,173,710
Seattle Metropolitan Municipality Sewer System Revenue:
5,000,000 5.400%,1/01/14 Aaa 4,975,150
3,080,000 5.400%, 1/01/15 Aaa 3,079,754
1,000,000 Spokane County Water District No.3,Water Revenue,7.700%, 1/01/18(Pre-refunded to
1/01/99) Ma 1,167,680
2,000,000 Walla Walla-Water and Sewer System Revenue,6.200%,8/01/12 Aaa 2,147,640
West Virginia-1.7%
School Building Authority of-West Virginia,Capital Improvement Revenue:
1,300,000 6.000%,7/01/12 Aaa 1,183,020
1,000,000 7.250%,7/01/15(Pre-refunded to 7/01/00) Aaa 1,351,311
5,000,000 Mason County Pollution Control Revenue (Appalachian Power Company),6.850%,
W01/22 Aaa 5,543,900
Wheeling Waterworks and Sewerage System Revenue:
1,500,000 6.600%;0/01/12 Ma 1,633,845
1,500,000 6.650%, 12/01/15 Aaa 1,639,050
Wisconsin-2.6%
7,020,000 Wisconsin Health and Educational Facilities Authority(Sisters of the Sorrowful Mother Ministry Corporation),6.125%,8/15/22 Aaa 7,395,079
1,000,000 Wisconsin Municipal Insurance Commission Revenue,8.700%,4/01/07 Asa 1,168,710
1,050,000 Ashland School District General Obligation,6.900%,4/01/10 Aaa 1,144,101
1,165,000 Frederic School District General Obligation,6.700%,3/01/11 Aaa 1,277,947
750,000 Hartford Water and Electric Revenue,7.200%,7/01/09 Aaa 865,688
St.Francis School District General Obligation: Aaa 447,392
415,000 6.800%,4/01/10 Aaa 480,573
445,000 6.850%,4/01/11
3,000,000 Superior Limited Obligation Revenue(The Detroit Edison Company),6.900%,8/01/21 Aaa 3,664,860
1,000,000 Three Lakes School District General Obligation,6.750%,4/01/12 Aaa 1,129,450
9;11249
Nuveen Tax-Free Value Funds Semiannual Report
August 31,1993
PORTFOLIO OF INVESTMENTS
(Unaudited)
Insured Municipal Bond - continued.
Principal Market
Amount Description Ratings* Value
Wyoming-0.3%
$ 2,000,000 University of Wyoming Facilities Revenue,7.100°/q6/01/10 Aaa $ 2,286,780
$632,518,000 Total Investments(cost$616,969,475)-99.1% 680,601,317
Temporary Investments in Short-Term Municipal Securities-2.0%
$ 5,400,000 Grand Rapids Water Supply System,Variable Rate Demand Bonds,2.300%, 1/01/201 VMIG-1 5,400,000
1,200,000 Jacksonville Health Facilities Authority(HSI Support System,Inc.),Variable Rate
Demand Bonds,2.400°/a,4/01/151 VMIG-1 1,200,000
2,200,000 Louisiana Recovery District,Sales Tax Revenue,Variable Rate Demand Bonds,2.500°/a,
7/01/98t VMIG-1 2,200,000
Massachusetts Dedicated Income Tax,Variable Rate Demand Bonds:
2,000,000 2.450%,6/01/95t VMIG-1 2,000,000
1,Q00,000 2.450%, 12/01/97t VMIG-1 1,000,000
1,900,000 Roanoke Industrial Development Authority(Roanoke Memorial,Roanoke Valley
Community,Giles Memorial,Bedford County and Radford Community),Series
1992A,Variable Rate Demand Obligation,2.450%,7/01/17t VMIG-1 1,700,000
$ 13,500,000 Total Temporary Investments-2.0% 13,500,000
Other Assets Less Liabilities-(1.1)% (7,148,999)
Net Assets-10098 $686,952,318
Number of
Standard&Poor's Moody's Issues Market Value Percent
Summary of.Ratings* AAA Aaa 241 $675,047,313 97%
Portfolio of AA+,AA,AA- Aal,Aa,Aa2,AO 2 2,042,284 1
Investments(excluding A+ Al 1 2,297,380 1
temporary investments): BBB+,-BBB,BBB- Baal,Baa,Baa2,Baa3 1 1,214,340 1
Total 245 $680,601,317 100%
All of the bonds in the portfolio,excluding temporary investments in short-term municipal securities,are either covered by Original
Issue Insurance,Secondary Market Insurance or Portfolio Insurance,or are backed by an escrow or trust containing sufficient U.S.
Government or U.S.Government agency securities to-ensure the timely payment of principal and interest.
* Ratings:
Using the higher of Standard&Poor's or Moody's rating.
t The security has a maturity of more than one year,but has variable rate and demand features which-qualify:it as-a short-term
security.The rate disclosed is that currently in effect.This rate-changes periodically based on market conditions or a specified
market index.
(WI)Security-purchased on a when-issued basis(note I).
See accompanying notes to financial statements.
931249
29
STATEMENT OF NET ASSETS
(Unaudited)
MUNI BOND INS.MUNI BOND
Assets
Investments in municipal securities,at market value(note 1) $2,518,980,010 $680,601,317
Temporary investments in short-term municipal securities,at
market value,which equals cost(note 1) 57,100,000 13,5000(0
Cash 18,606,516 247,797
Receivables:
Interest 45463,064 8,715,716
Common stock sold 1,$19,930 2;450,42,0
Investments sold 13,911,041 4,082,627
Other assets 42,450 6,588
Total assets 2,655,423,011 ' - 709,604,465
Liabilities
Payables:
Investments purchased 70,011,886 19,564,763
Common stock reacquired 1,649,892 543,018
Accrued expenses:
Management fees(note 6) 992;293 273)190
Other 1,004260 229,001
Dividends payable 9,779,788 2,042,175
Total liabilities 83488,119 22,852,147
Net assets applicable to shares of common stock outstanding(note 7) $2,571,984,892 $686,952,318
Shares outstanding 270,275,821 61,873279
Net asset value and redemption price per share(note 1) $ :9.52 - $ 11.10
Offering price per share(net asset value per share plus maximum
sales charge of 4.75Wo of offering price)(note 1) $ 9.99 $ 11.65
75
931249
Nuveen Tax-Free Value Funds Semiannual Report
August 31,1993
STATEMENT OF OPERATIONS
Six Months Ended August 31,1993(Unaudited)
MUNI BOND INS. MUNI BOND
Investment Income x r
Interest income(note 1) StIVO,585 ` ' .t$ ,228,
Expenses: _ ° a'A
Management fees(note 6) 5y799,1$f , 1
Shareholders'servicing agent fees and expenses 1,814896 ' _ .101'4;11
Custodian's fees and expenses 141x,317 is'
•
Directors'fees and expenses(note 6) t`17;a$2 •
Professional fees 117 7
Shareholders'reports—printing and mailing expenses ;1'7G,GM11 •
Federal and state registration fees 128,117 "(DAM'
Portfolio insurance expense
Other expenses • 59 4 :x 9,P05
Net expenses S,168,744 " ;24, 6,988',
Net investment income 87;81$,$41• ° 'MOON
Realized and Unrealized Gain from Investments
Net realized gain from investment transactions(note 4) 18,214$48 M9125
Net change m unrealized appreciation or depreciation of investments E Y991209 ,a 1,9'y478,4i7-
Net gain from investments 17,111,166 .�,
Net increase in net assets from operations $134,9M)*) ilaitA85,0b8
See accompanying notes to financial statements.
9.11^,49 2
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
MUNI BOND INS.MUNI BOND
6 Months Ended Year Ended 6 Months Ended Year Ended
8/31/93 2/28/93 8/31/93 2/26/93
Operations
Net investment income $ 67,812,841 $ 122,765,268. $ 16,258,326 $ 23,859,783
Net realized gain from investment transactions 16,214,840 16,895,742 -2,149,125 2,058,889
Net change in unrealized appreciation or depre-
ciation of investments 902,269 81,019,582. 1348,457- 38,913,267
Net increase in net assets from operations 84,929,950 220,88&592 31,885,908 64,831,939
Distributions to Shareholders(note 1)
Net investment income (67,209,377) (120,687,761) (15,862,349) (23,796,913)
Net realized-gain(loss)from investment
transactions — (12,437,816). (2,840,798)
Decrease in net assets from distributions to
shareholders (67,209,377) (133,125,577) - (15,862,349) (28,437,711)
Common Stock Transactions(note 2)
Net proceeds from sale of shares 271,736,108 573,234,273 121,810,166 249,354,412
Net asset value of shares issued to shareholders
'
due to reinvestment of distributions frontlet
investment income and from net realized
gains frominvestment transactions 54,937,243 111,926,042 10,398,128 18,214,303
326,673,351 685,160,315 132,206,294 267,588,715
Cost of shares redeemed (144,078,350) (236,754,459) .(28,509,456) - (45,584,228)
Net increase in net assets derived from -
common stock transactions 182,595,001 448,405,856 , 103,696,838 221,984,487
Net increase in net assets 200,315,574 535,960,871 119,720,397 260,378,715
Net assets at beginning of period 2,371,669,318 1,835,708,447 567,231,921 306,853,206
Net assets at end of period $2,571,984,892 $2,371,669,318 ..$686,952,318 $567,231,921
Undistributed net:investment incomeat end-of -
period $ 626,390 $ 22,926 $ 399,841 $ 3,864
931249 27
Nuveen Tax-Free Value Funds Semiannual Report
August 31,1993
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1 General Information At August 31, 1993, the nationally diversified Funds covered in this report (the
and Significant "Funds") are Nuveen Municipal Bond Fund, Inc. and Nuveen Insured Tax-Free
Accounting Policies Bond Fund, Inc. (comprised of the Nuveen Insured Municipal Bond Fund). Each
Fund invests primarily in a diversified portfolio of municipal obligations issued
by state and local government authorities. Each Fund issues its own shares, at
a price equal to net asset value plus varying sales charges.
The Funds are registered under the Investment Company Act of 1940 as open-
end, diversified management investment companies.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
generally accepted accounting principles.
Securities Valuation Portfolio securities for which market quotations are readily available are
valued at the mean between the quotedbid and asked prices or the yield
equivalent. Portfolio securities for which market quotations are not readily
available are valued at fair value by consistent application of methods
determined in good faith by the Board of Directors. Temporary investments in
securities that have variable rate and demand features qualifying them as
short-term securities are traded and valued at principal amount.
Securities Securities transactions are recorded on a trade date basis. Realized gains and
Transactions losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery
basis may be settled a month or more after the transaction date. The securities
so purchased are subject to market fluctuation during this period. The Funds
have instructed the custodian to segregate assets in a separate account with a
current value at least equal to the amount of their purchase commitments.At
August 31, 1993, there werepurchase commitments in Municipal Bond and
Insured Municipal Bond which amounted to $48,570,560-and$11,744,199,
respectively.
Interest Income Interest income is determined on the basis of interest accrued and discount
earned, adjusted for amortization of premiums or discounts on long-term debt
securities when required for federal income tax purposes.
ze J J ei Ail
Dividends and Net investment income-is declared as a-dividend monthly and payment is made
Distributions to or reinvestment is credited to shareholder accounts after month-end. Net
Shareholders realized gains from securities transactions are distributed to shareholders not
less frequently than annually only to the extent they exceed available capital
loss carryovers.
Federal Income Taxes Each Fund is a separate taxpayer for federal income tax purposes and intends
to comply with the requirements of the Internal Revenue Code applicable to
regulated investment companies by distributing all of its net investment
income, in addition to net realized gains from investment transactions, to
shareholders. Therefore, no federal income tax provision is required.
Furthermore, each Fund intends to satisfy conditions which will enable interest
from municipal securities,which is exempt from regular federal income tax, to
retain such tax-exempt status when distributed to the shareholders of the
respective Funds.
Insurance Insured Municipal Bond invests in municipal securities which are covered by
insurance guaranteeing the timely payment of principal and interest thereon or
backed by an escrow or trust account containing sufficient U.S. Government or
U.S. Government agency securities to ensure the timely payment of principal
and interest. Each insured municipal security is covered by Original Issue
Insurance, Secondary Market Insurance or Portfolio Insurance. Such Insurance
does not guarantee the market value of the municipal securities or the value of
the Fund's shares. Original Issue Insurance and Secondary Market Insurance
remain in effect as long as the municipal securities covered thereby remain
outstanding and the insurer remains in business, regardless of whether the
Fund ultimately disposes of such municipal securities. Consequently, the
market value of the municipal securities covered by Original Issue Insurance or
Secondary Market Insurance may reflectvalue attributable to the insurance.
Portfolio Insurance is effective only while the municipal securities are held by
the Fund. Accordingly, neither the prices used in determining the market value
of the underlying municipal securities nor the net asset value of the Fund's
shares include value, if any, attributable to the Portfolio Insurance. Each policy
of the Portfolio Insurance does, however, give the Fund the right to obtain
permanent insurance with respect to a municipal security covered by the
Portfolio Insurance policy at the time of its sale.
921249 29
Nuveen Tax-Free Value Funds Semiannual Report
August 31,1993
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
2 Fund Shares Transactions in shares of common stock for the six months ended August 31,
1993,were as follows:
MUNI BOND INS.MUNI BOND
Shares sold 28,854,961 11,273,274
Shares issued to
shareholders due to
reinvestment of
distributions from net
investment income and
from net realized gains
from investment 5,828,632 963,876
transactions
34,683,593 12,237,150
Shares redeemed (15,289,239) (2,636,738)
Net increase 19,394,354 9,600,412
3 Distributions to On September 9, 1993, Municipal Bond and Insured Municipal Bond declared
Shareholders dividend distributions of$.0430 and$.0465 per share, respectively, from their
ordinary income. These distributions were paid on October 1, 1993, to
shareholders of record on September 9, 1993.
4 Securities Purchases and sales (including maturities) of investments in municipal
Transactions securities and temporary municipal investments during the six months ended
August 31, 1993,were as follows:
MUNI BOND INS.MUNI BOND
Purchases
Investments in municipal
securities $373,487,412 $148,003,025
Temporary municipal
investments 244,901,710 85,300,000
Sales and Maturities
Investments in municipal
securities 138,346,970 37,549,718
Temporary municipal
investments 231,200,000 88,800,000
30 921249
At August 31, 1993, the cost of investments owned for federal income tax
purposes was the same as the cost for financial reporting purposes for each
Fund.
5 Unrealized Gross unrealized appreciation and gross unrealized depreciation of
Appreciation investments at August 31, 1993,were as follows:
(Depreciation) MUNI BOND INS.MUNI BOND
Gross unrealized:
Appreciation $207,942,175 $63,631,842
Depreciation (153,194)Net unrealized appreciation $207,788,981 $63,631,842
6 Management Fee and Under the Funds' investment management agreements with Nuveen Advisory
Other Transactions Corp. (the "Adviser"), a wholly owned subsidiary of John Nuveen &Co.
with Affiliates Incorporated,each Fund pays to the Adviser an annual management fee,
payable monthly, at the rates set forth below which are based upon the average
daily net asset value of each Fund:
Management
Average Daily Net Asset Value Fee
For the first$500,000,000 .5 of 1%
For the next$500,000,000 .475 of 1%
For the next$1,000,000,000 .45 of 1%
For assets over$2,000,000,000* .425 of 1%
*Effective May 1, 1992, this new breakpoint was added to the table for average
daily net assets values which exceed$2 billion.
Effective August 1, 1993, the management fee schedule for each Fund was
changed to the schedule shown below, as approved by shareholders of the
Funds at their meeting on July 28, 1993.
Management
Average Daily Net Asset Value Fee
For the first$125,000,000 .55 of 1%
For the next$125,000,000 .5375 of 1%
For the next$250,000,000 .525 of t%
For the next$500,000,000 .5125 of 1%
For the next$1,000,000,000 .5 of 1%
-For assets over$2,000,000,000 .475 of 1%
St 9 1249
Nuveen Tax-Free Value Funds Semiannual Report
August 31,1993
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
The management fee is reduced by, or the Adviser assumes certain expenses of
each Fund, in an amount necessary to prevent the total expenses of each Fund
(including the management fee,but excluding interest,taxes, fees incurred in
acquiring and disposing of portfolio securities and, to the extent permitted,
extraordinary expenses) in any fiscal year from exceeding.75 of 10/o of the
average daily net asset value of Municipal Bond and .975 of 1% of the average
daily net asset value of Insured Municipal Bond.
The management fee referred to compensates the Adviser for overall
investment advisory and administrative services, and general office facilities.
The Funds pay no compensation directly to their directors who are affiliated
with the Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser.
7 Composition of Net At August 31, 1993, the Funds had common stock authorized of$.10 par value
Assets per share for Municipal Bond and$.01 par value per share for Insured
Municipal Bond. Net assets consisted of:
MUM BOND INS.MUNI BOND
Capital paid-in $2,339,302,612 $619,454,166
Undistributed net
investment income :626,390 399,841
Undistributed net realized
gain from investment
transactions 24,266,909 3,466,469
Net unrealized appreciation
of investments 207,788,981 63,631,842
Net assets $2,571,984,892 $686,952,318.
Authorized shares 300,000,000 500,000,000
32 penis g .A.249
8 Investment Each Fund invests in municipal securities which include general obligation,
Composition escrowed and revenue bonds.At August 31, 1993,the revenue sources by
municipal purpose for these investments, expressed as a percent of total
investments,were as follows:
MUNI BOND INSURED BOND
Revenue Bonds:
Health Care Facilities 8% 20%
Electric Utilities 17 5
Housing Facilities 17 2
Water/Sewer Facilities 3 17
Transportation 9 11
Pollution Control
Facilities 6 5
Other Revenue 3 9
General Obligation Bonds '.8 19
Escrowed Bonds -29 12
100% 100%
_
In addition, certain long-term and intermediate-term investments owned by the
Funds are covered by insurance issued by several private insurers who
guarantee the payment of principal and interest in the event of default (6% for
Municipal Bond, 100%for Insured Municipal Bond). Such insurance, however,
does not guarantee the market value of the municipal securities or the value of
the Fund's shares.
All of the temporary investments in short-term municipal securities have credit
enhancements (letters of credit, guarantees or insurance) issued by third party
domestic or foreign banks or other institutions.
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
923.249 33
Nuveen Tax-Free Value Funds Semiannual Report
August 31,1993
FINANCIAL HIGHLIGHTS
(Unaudited)
Selected data-for a share of Common Stock outstanding throughout each period-is as follows:
Income from Ratios/Supplemental Data
Investment Operations
Net Ratio of
Realized Less Distributions Ratio of Net
Net and Total Expenses Investment
Asset Unrealized Dividends Return to Income to
Value Net Gain(Loss) from Net Distributions Net Asset on Net Nat Assets Average Average Portfolio
Beginning Investment from Investment from Capital Value End Asset End of Period Net Net Turnover
Muni Bond of Period Income' Investments Income Gains of Period Value lin thousands) Assets't Assets'f Rate
6 Mos.Ended 8/31/93 $9.450 1261 $.068 $1.259) $ - $9.520 3.54% $2,571,985 .66%t 5.47%t 6%
Year Ended 2/28/93 9.080 .555 .414 (.544) (.055) 9.450 11.04 2,371,669 .61 5.95 14
5 Mos.Ended 2/29/92 9.040 .239 .080 (.239) (.040) 9.080 3.56 1,835,708 .52t 6.24t 6
Year Ended 9/30,
1991 8.650 .579 .438 (.589) (.038) -9.040 12.15 1,661,420 .60 6.48 10
1990 8.730 .596 (.080) (.5%) - 8.650 6.04 1,323,623 .62 6.78 8
1989 8.520 .597 .239 (.597) (.029) 8.730 10.07 1,119,833 .64 6.85 12
1988 8.020 .596 .536 (.5%) (.036) 8.520 14.50 945,361 .65 7.11 8
1987 8.780 .598 (.614) (.598) (.146) 8.020 1.39) 764,092 .68 6.85 16
1986 7.830 .595 1.162 (.595) (.212) 8.780 23.02 668,416 .71 6.95 39
1985 7.180 -.586 .650 (.586) — 7.830 17.73 459,627 .73 7.68 28
'insured Muni Bond
6 Mos.Ended 8/31/93 10.850 .287 .244 (.281) — 11.100 4.99 686,952 .68t 5.23t 6
Year Ended 2/28/93 10.030 .591 .880 (.589) (.062) 10.850 15.24 567,232 .72 5.68 20
2/29/92 9.690 .612 .425 (.6171 (.080) 10.030 11.03 306,853 .73 6.12 45
2/28/91 9.520 .617 .198 (.611) (.034) 9.690 8.94 178,931 .80 6.45 53
2/28/90 9.350 .627 .262 (.630) (.089) '9.520 9.73 111,806 .83 6.49 78
2/28/89 9.300 .629 .050 (.629) — 9.350 7.63 66,049 .87 6.83 106
2/28/88 9.790 .637* (:490) (.637) — 9.300 2.00 41,330 .60 6.93* 88
12/10/86 to 12/28/87 9.600 .127* .190 (.127) — 9.790 3.31 13,160 — 4.011*t —
t Annualized.
* Reflects the waiver of certain management fees and reimbursement of certain other expenses by the Adviser.See note 6 of
Notes to Financial Statements.
34 931.249
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y�n .
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r r 11l a
THE NUVEEN FAMILY OF TAX-FREE VALUE FUNDS
Nuveen offers individual investors 16 different long-term tax-free mu-
tual funds to choose from, including:•
National Long-Term Nuveen Municipal Bond Fund
Funds Nuveen Insured Municipal Bond Fund
State Long-Term Funds Arizona
Nuveen Arizona Tax-Free Value Fund
California
Nuveen California Tax-Free Value Fund
Nuveen California Insured Tax-Free Value Fund
Florida
Nuveen Florida Tax-Free Value Fund
Maryland
Nuveen Maryland Tax-Free Value Fund
Massachusetts
Nuveen Massachusetts Tax-Free Value Fund
Nuveen Massachusetts Insured Tax-Free Value Fund
Michigan
Nuveen Michigan Tax-Free Value Fund
New Jersey
Nuveen New Jersey Tax-Free Value Fund
New York _
Nuveen New York Tax-Free Value Fund
Nuveen New York Insured Tax-Free Value Fund
Ohio
Nuveen Ohio Tax-Free Value Fund
Pennsylvania
Nuveen Pennsylvania Tax-Free Value Fund
Virginia
Nuveen Virginia Tax-Free Value Fund
92,1249
NUVEEN MUNICIPAL BOND FUND, INC.
Prospectus
April 23, 1993
Nuveen Municipal Bond Fund, Inc. (the "Fund") is designed to provide as
high a level of current interest income exempt from regular federal in-
come tax as is consistent, in the view of the Fund's management,with
preservation of capital. The Fund invests in investment-grade quality,
long-term Municipal Obligations judged by the Fund's portfolio manager
to offer the best values among Municipal Obligations of similar credit
quality.
You may purchase shares in the Fund at a price equal to their net asset
value plus a sales charge as set forth under "How to Buy Fund Shares."
This Prospectus contains information you should know before investing in
the Fund. Please retain it for future reference. You can find more detailed
information about the Fund in the"Statement of Additional Information"
dated April 23, 1993. For a free copy of this Statement, write to the Fund,
c/o John Nuveen&Co. Incorporated, 333 West Wacker Drive, Chicago, IL
60606, or call Nuveen toll-free at 800-621-7227. The Statement has been
filed with the Securities and Exchange Commission and is incorporated by
reference into this Prospectus.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED
BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE
SECURITIES COMMISSION NOR HAS THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION
PASSED UPON THE ACCURACY OR ADEQUACY OF THIS
PROSPECTUS.ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
John Nuveen&Co.Incorporated
For information,call toll-free 800-621-7227
9;1249
CONTENTS
3 Summary of Fund Expenses
4 How to Determine if the Fund is Right for You
7 Condensed Financial Information—Selected Per Share Data and Ratios
8 Who is Responsible for the Operation of the Fund?
8 What are the Fund's Investment Objective and Policies?
14 Management of the Fund
15 How the Fund Shows Performance
18 Distributions and Taxes
21 Net Asset Value
21 How to Buy Fund Shares
30 How to Redeem Fund Shares
32 General Information
Appendix A—Taxable Equivalent Yield Tables
Application
2 q{�
9.!3. 49
SUMMARY OF FUND EXPENSES
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WHAT ARE THE FUND'S INVESTMENT OBJECTIVE AND POLICIES?
Investment Objective The investment objective of the Fund is to provide you with as high a level
The Fund is designed of current interest income exempt from regular federal income tax as is
to de income consistent, in the view of the Fund's management,with preservation of
free from federal capital.This investment objective is a fundamental policy of the Fund and
personal income tax. may not be changed without the approval of the holders of a majority of
the shares of the Fund. There can be no assurance that the investment
objective of the Fund will be achieved.
e
034 '< s
How the Fund Pursues Its Value Investing. Nuveen Advisory believes that in any market environ-
Objective ment there are quality Municipal Obligations whose current price, yield,
The Fund seeks credit quality and future prospects make them seem underpriced or excep-
tionally attractive when compared with other Municipal Obligations in the
Municipal Obligations
considered to be market. In selecting investments for the Fund, Nuveen Advisory will at-
undervalued. tempt to identify and purchase those investment-grade quality, underval-
ued or underrated Municipal Obligations which offer the best values
among Municipal Obligations of similar credit quality. By selecting these
Municipal Obligations, the Fund will seek to provide attractive current
tax-free income and to protect the Fund's net asset value in both rising
and declining markets. In this way, regardless of the direction the market
may move,value investing, if successful, will better position the Fund to
achieve its investment objective of as high-a level of current interest in-
come exempt from regular federal income tax as is consistent, in the view
of the Fund's management,with preservation of capital. Any capital appre-
ciation realized by the Fund will generally result in the distribution of
taxable capital gains to Fund shareholders. See "Distributions and Tax-
es."
Thorough research The Importance of Thorough Research. Successful value investing de-
can help identify pends on identifying and purchasing undervalued or underrated securities
values. before the rest of the marketplace finds them. Nuveen Advisory believes
the municipal market provides these opportunities, in part because of the
relatively large number of issuers of tax-exempt securities and the rela-
tively small number of full-time, professional municipal market analysts.
For example, there are currently about 7,000 common stocks that are fol-
lowed by about 22,000 analysts. By contrast, there are about 60,000 enti-
ties that issue tax-exempt securities and less than 1,000 professional mu-
nicipal market analysts.
Nuveen and Nuveen Advisory believe that together they employ the largest
number of research analysts in the investment banking industry devoted
exclusively to the review and surveillance of tax-exempt securities. Their
team of more than 30 individuals has over 300 years of combined munici-
pal market experience. Nuveen and Nuveen Advisory have access to infor-
mation on approximately 50,000 municipal issuers, and review more than
$125 billion of tax-exempt securities annually.
Which Municipal Obligations are Selected For Investment? The Fund
will invest primarily in Municipal Obligations issued within the 50 states
and certain U.S. possessions or territories so that the interest income on
the Municipal Obligations will be exempt from regular federal income tax,
although this income may be subject to applicable state personal income
taxes.
9
931249
The Fund will seek The Fund's investment assets will consist of (1) Municipal Obligations
to purchase rated investment-grade at the time of purchase (Baa or BBB or better by
investment-grade Moody's Investors Service, Inc. ("Moody's") or Standard and Poor's Corpo-
quality Municipal ration ("S&P")); (2) unrated Municipal Obligations of investment-grade
Obligations. quality in the opinion of Nuveen Advisory, limited to no more than 100/0 of
the Fund's net assets; and (3) temporary investments within the limita-
tions and for the purposes described below. Municipal Obligations rated
Baa are considered by Moody's to be medium grade obligations which
lack outstanding investment characteristics and in fact have speculative
characteristics as well,while Municipal Obligations rated BBB are re-
garded by S&P as having an adequate capacity to pay principal and inter-
est.Although the Fund to date has not done so and has no present
intention of doing so, the Fund may invest up to 20%of its net assets in
Municipal Obligations that pay interest subject to the federal alternative
minimum tax ("AMT Bonds"). The Fund intends to emphasize
investments in Municipal Obligations with long-term maturities in order to
maintain an average portfolio maturity of 20-30 years, but the average
maturity may be shortened from time to time depending on market
conditions in order to help limit the Fund's exposure to market risk. As a
result, the Fund's portfolio at any given time may include both long-term
and intermediate-term Municipal Obligations.
Under ordinary circumstances, the Fund will invest substantially all
(at least 80%) of its net assets in Municipal Obligations, and not more
than 20%of its net assets in "temporary investments," described below,
provided that temporary investments subject to regular federal income
tax and AMT Bonds may not comprise more than 20% of the Fund's net
assets. For defensive purposes, however, in order to limit the exposure of
its portfolio to market risk from temporary imbalances of supply and de-
mand or other temporary circumstances affecting the municipal market,
the Fund may invest without limit in temporary investments. The Fund
will not be in a position to achieve its investment objective of tax-exempt
income to the extent it invests in taxable temporary investments.
The foregoing investment policies are fundamental policies of the Fund
and may not be changed without the approval of the holders of a majority
of the shares of the Fund.
m
01249
Description of the Fund's Municipal Obligations. Municipal Obligations, as the term is used in
Investments this prospectus, are federally tax-exempt debt obligations issued by
Municipal Obligations states,cities and local authorities and by certain U.S. possessions or terri-
issued by states, tones to obtain funds for various public purposes, such as the construc-
are cities and local tion of public facilities,the payment of general operating expenses and
authorities to the refunding of outstanding debts. They may also be issued to obtain
funding for various private activities, including loans to finance the con-
support a variety of struction of housing, educational and medical facilities or privately owned
public activities. industrial development and pollution control projects.
The two principal classifications of Municipal Obligations are general obli-
gation and revenue bonds. General obligation bonds are secured by the
issuer's pledge of its full faith, credit and taxing power for the payment of
principal and interest. Revenue bonds are payable only from the revenues
derived from a particular facility or class of facilities or, in some cases,
from the proceeds of a special excise or other specific revenue source.
Industrial development and pollution control bonds are in most cases reve-
nue bonds and do not generally constitute the pledge of the credit
or taxing power of the issuer of these bonds.
Municipal Obligations may also include participations in lease obligations
or installment purchase contract obligations (collectively, "lease obliga-
tions") of municipal authorities or entities. Certain "non-appropriation"
lease obligations may present special risks because the municipality's
obligation to make future lease or installment payments depends on
money being appropriated each year for this purpose. The Fund will seek
to minimize these risks by not investing more than 10%of its assets in
non-appropriation lease obligations, and by only investing in those non-
appropriation lease obligations that meet certain criteria of the Fund. See
the Statement of Additional Information for further information about
lease obligations.
The yields on Municipal Obligations depend on a variety of factors, includ-
ing the condition of financial markets in general and the municipal mar-
ket in particular, as well as the size of a particular offering, the maturity
of the obligation and the rating of the issue. Certain Municipal Obligations
may pay variable or floating rates of interest based upon certain market
rates or indexes such as a bank prime rate or a tax-exempt money mar-
ket index. The ratings of Moody's-and S&P represent their opinions as to
the quality of those Municipal Obligations which they undertake to rate. It
should be emphasized, however,that ratings are general and are not abso-
lute standards of quality. Consequently, Municipal Obligations with the
same maturity, coupon and rating may have different yields,while those
having the same maturity and coupon with different ratings may have the
n
9%1:19
same yield. The market value of Municipal Obligations will vary with
changes in prevailing interest rate levels and as a result of changing evalu-
ations of the ability of their issuers to meet interest and principal pay-
ments. Similarly, the market value and net asset value of shares of the
Fund will change in response to interest rate changes; they will tend to
decrease when interest rates rise and increase when interest rates fall.
All temporary Temporary Investments. As described above, the Fund under ordinary
investments will be circumstances may invest up to 20% of its net assets in "temporary
U.S. Government or investments,"but may invest without limit in temporary investments
high quality during temporary defensive periods. The Fund will seek to make
securities. temporary investments in short-term securities the interest on which is
exempt from regular federal income tax, but may be subject to state
income tax. If suitable tax-exempt temporary investments are not
available at reasonable prices and yields, the Fund may make temporary
investments in taxable securities. The Fund will invest only in those
taxable temporary investments that are either U.S. Government securities
or are rated within the highest grade by Moody's or S&P, and mature
within one year from the date of purchase or carry a variable or floating
rate of interest. See the Statement of Additional Information for further
information about the temporary investments in which the Fund may
invest.
Certain Investment Portfolio Trading and Turnover. The Fund will make changes in its
Strategies and Limitations investment portfolio from time to time in order to take advantage of oppor-
Tice Fund will focus tunities in the municipal market and to limit exposure to market risk. The
Fund may engage to a limited extent in short-term trading consistent with
on long-term
its investment objective, but will not trade securities solely to realize a
investment strategies,
and will engage in profit. Changes in the Fund's investments are known as "portfolio turn-
short-term trading over."While the Fund's annual portfolio turnover rate is not expected to
only when consistent exceed 350/0, actual portfolio turnover rates are impossible to predict, and
with its stated may exceed 350/0 in particular years depending upon market conditions.
investment objective. When-issued or Delayed Delivery Transactions. The Fund may pur-
chase and sell Municipal Obligations on a when-issued or delayed delivery
basis,which calls for the Fund to make payment or take delivery at a
future date, normally 15-45 days after the trade date. The commitment to
purchase securities on a when-issued or delayed delivery basis may in-
volve an element of risk because the value of the securities is subject to
market fluctuation, no interest accrues to the purchaser prior to settle-
ment of the transaction, and at the time of delivery the market value may
be less than cost.A Fund commonly engages in when-issued transactions
in order to purchase or sell newly-issued Municipal Obligations, and may
12
931249
engage in delayed delivery transactions in order-to manage its operations
more effectively. See the Statement of Additional Information for further
information about when-issued and delayed delivery transactions.
The Fund will take Other Investment Policies and Restrictions. The Fund has adopted cer-
steps to ensure that taro fundamental policies intended to limit the risk of its investment port-
its assets are not folio. In accordance with these policies,the Fund may not (1) invest more
concentrated in just than 5%Po of its total assets in securities of any one issuer, except that this
a few holdings. limitation shall not apply to securities of the U.S. government,its agencies
and instrumentalities; (2) invest more than 5%of its total assets in securi-
ties of unseasoned issuers which, together with their predecessors,have
been in operation for less than three years; (3) invest more than 10%of
its total assets in securities which the Fund is restricted from selling to
the public without registration under the Securities Act of 1933; (4) hold
securities of a single bank, including securities backed by a letter of
credit of that bank, if these holdings would exceed 5%of the total assets
of the Fund. In applying these policies,the "issuer" of a security is
deemed to be the entity whose assets and revenues are committed to the
payment of principal and interest on that security, provided that the guar-
antee of an instrument will generally be considered a separate security.
See the Statement of Additional Information for a more complete descrip-
tion of the fundamental investment policies summarized-above and the
Fund's other fundamental investment policies. The Fund's fundamental in-
vestment policies may not be changed without the approval of the Fund's
shareholders.
13
90i2.49
MANAGEMENT OF THE FUND
Nuveen Advisory has The management of the Fund, including general supervision of the duties
been managing performed for the Fund by Nuveen Advisory under the Investment Manage-
similar tax-free ment Agreement, is the responsibility of the Fund's Board of Directors.
funds since 1976, and
has more than$28 Nuveen Advisory acts as the investment adviser for and manages the in-
billion of assets vestment and reinvestment of the assets of the Fund. Its address is
under management. Nuveen Advisory Corp., 333 West Wacker Drive, Chicago, Illinois 60606.
Nuveen Advisory also administers the Fund's business affairs, provides
office facilities and equipment and certain clerical, bookkeeping and ad-
ministrative services, and permits any of its officers or employees to serve
without compensation as directors or officers of the Fund if elected to
such positions.
Nuveen Advisory was organized in 1976 and since then has exclusively
engaged in the management of municipal securities portfolios. It currently
serves as investment adviser to 21 open-end municipal securities portfo-
lios (the "Nuveen Mutual Funds") and 61 exchange-traded municipal secu-
rities funds (the "Nuveen Exchange-Traded Funds"). Each of these
invests substantially all of its assets in investment-grade quality, tax-free
municipal securities, and except for money-market funds, adheres to the
value investing strategy described previously.As of the date of this Pro-
spectus, Nuveen Advisory manages over$28 billion in assets held by the
Nuveen Mutual Funds and the Nuveen Exchange-Traded Funds, on behalf
of over 700,000 investors.
For the services and facilities furnished by Nuveen Advisory, the Fund
has agreed to pay an annual management fee as follows:
Average Daily Net Asset Value Management Fee
For the first$500,000,000 .500 of 1%
For the next$500,000,000 .475 of 1%
For the next$1,000,000,000 .450 of 1%
For assets.over$2,000,000,000 .425 of 1%
Effective August 1, 1993, the Adviser has agreed to waive a portion of its
management fee so that the Fund will pay an annual management fee in
accordance with the following schedule:
Management Fee
Average Daily Net Asset Value Effective August 1,1%3
Less than$125,000,000 .5000 of 1%
$125,000,000 but less than$250,000,000 .4875 of 1%
$250,000,000 but less than$500,000,000 .4750 of 1%
$500,000,000 but less than$1,000,000,000 4625 of 1%
$1,000,000,000 but less than$2,000,000,000 .4500 of 1%
$2,000,000,000 and over .425O of 1%
19
9012'49
All fees and expenses are accrued daily and deducted before payment of
dividends to investors. In addition to the fee of Nuveen Advisory,the Fund
pays all its other costs and expenses of its operations. The Adviser will
waive all or a portion of its management fee or reimburse certain ex-
penses of the Fund in order to prevent total expenses in any fiscal year
from exceeding.75 of 1%of the average daily net asset value of the Fund.
For the fiscal year ended February 28, 1993, the management fee
amounted to .47 of 1%of the average net assets, and the Fund's total
expenses amounted to .61 of 1%of the average net assets.
Nuveen Advisory is a wholly-owned subsidiary of John Nuveen&Co. Incor-
porated, 333 West Wacker Drive, Chicago, Illinois 60606, the oldest and
largest investment banking firm (based on number of employees) special-
izing in the underwriting and distribution of tax-exempt securities.
Nuveen, the principal underwriter of the Fund's shares, is sponsor of the
Nuveen Tax-Exempt Unit Trust, a registered unit investment trust. It is
also the principal underwriter for the Nuveen Mutual Funds, and served
as co-managing underwriter for the shares of the Nuveen Exchange-
Traded Funds. Founded in 1898, Nuveen is a subsidiary of The John
Nuveen Company which, in turn, is over 70% owned by The St. Paul Com-
panies, Inc. ("St. Paul"), a management company principally engaged in
providing property-liability insurance through subsidiaries.
HOW THE FUND SHOWS PERFORMANCE
The Fund may The Fund from time to time may quote various performance measures in
compare its order to illustrate the historical returns available from an investment in
performance with the Fund. These performance measures include:
other tax-free and
taxable investments, Yield. The Fund's yield is a measure of the net investment income
often on a taxable earned over a specified one-month or 30-day period expressed as a per-
equivalent basis. tentage of the maximum offering price of the Fund's shares at the end of
the period. Yield is an annualized figure,which means that it is assumed
that the Fund generates the same level of net investment income over a
one-year period.
Taxable equivalent yield is the yield that a taxable investment would need
to generate in order to equal the Fund's yield for an investor in a stated
tax bracket. The Fund's taxable equivalent yield will consequently be
higher than its yield. See the chart below and Appendix A for examples of
taxable equivalent yields and how you can use them to compare other
investments to investments in the Fund.
15
91249
HISTORICAL YIELDS
16% 16%
Taxable Equivalent Yield
of Bond Buyer 20 Index
149'0 30-Year Treasury Bonds 14%
&month CDs
12% Taxable Money Market Funds 72%
10% 10%
8% 8%
6% 6%
4% 4%
2% 2%
I I I I I I I I
1/85 1/86 1/87 1/88 1/89 1/90 1/91 1/92 3/93
Sources:Bond Buyer,BANX0U0TE,IsC/Donoghue's Money Fund Report
As this chart shows, interest rates on various long-and short-term invest-
ments will fluctuate over time, and not always in the same direction or to
the same degree. For convenience, the taxable equivalent yield of the
Bond Buyer 20 Index shown here wascalculated using the current 31%
federal income tax rate. Other federal income tax rates, both higher and
lower,were in existence for all or part of the period shown in the chart.
This chart is not intended to predict the future direction of interest rates.
See the discussion below under the subcaption "General"for a descrip-
tion of the indices and investments shown in the chart.
Total Return. Average annual total return and cumulative total return
figures for a specified period measure both the net investment income gen-
erated by, and the effect of any realized and unrealized appreciation or
depreciation of, an investment in the Fund, assuming the reinvestment of
all dividends and capital gain distributions. Thus,the figures reflect the
change in the value of an investment in the Fund during that period.Aver-
age annual total return figures that assume the imposition of the maxi-
mum sales charge will be quoted for at least the one, five and ten-year
periods ending on the last day of a recent calendar quarter. Average an-
nual total return figures are annualized and,therefore, represent the aver-
16
age annual percentage change over those periods. The Fund's cumulative
total return for a specific period is typically calculated by taking a hypo-
thetical initial investment in Fund shares on the first day of the period,
deducting,where appropriate, the maximum sales charge, and computing
the "redeemable value"of the investment at the end of the period.Cumula-
tive total return figures are not annualized and represent the cumulative
percentage or dollar value change over the period specified.
The taxable equivalent total return of a Fund represents the total return
that would be generated by a taxable income fund that produced the same
amount of net asset value appreciation or depreciation and after-tax in-
come as the Fund in each year, assuming a specified tax rate. The tax-
able equivalent total return of the Fund will therefore be higher than its
total return over the same period. The taxable equivalent total return fig-
ures may be calculated to include or exclude the effect of the initial sales
load. Comparing the taxable equivalent total return of a tax-exempt fund
with the total return of a taxable fund may help you to compare their
investment performance.
General. The Fund's yield, return and net asset value will fluctuate.Any
given performance quotation or performance comparison for the Fund is
based on historical earnings and should not be considered as representa-
tive of the performance of the Fund for any future period. See the
Statement of Additional Information for further information concerning
the Fund's performance. For information as to current yield andother
performance information regarding the Fund call Nuveen toll-free at
800-621-7227.
Shares of the Fund are sold at net asset value plus a maximum sales
charge of 4.75%of the offering price.While the maximum sales charge is
normally reflected in the Fund's performance figures, certain average an-
nual total return, cumulative total return and taxable equivalent total re-
turn calculations may not include thischarge and those results would be
reduced if it were included. Shares of the Fund are redeemable by an
investor at the current net asset value, which may be more or less than
original cost.
A comparison of the current yield or historic performance of the Fund to
those of other investments is one element to consider in making an in-
formed investment decision. The Fund may from time to time in its adver-
tising and sales materials compare its current yield or total return with
the yield or total return on taxable investments such as corporate or U.S.
Government bonds,bank certificates of deposit (CDs) or money market
funds.These taxable investments may have investment characteristics
n
901249
that differ from those of the Funds. U.S. Government bonds, for example,
are long-term investments backed by the full faith and credit of the
U.S. Government, and bank CDs are generally short-term, FDIC-insured
investments,which pay fixed principal and interest but are subject to
fluctuating rollover rates. Money market funds are short-term investments
with stable net asset values, fluctuating yields and special features
enhancing liquidity. Additionally, the Fund may compare its current yield
or total return history with a widely-followed, unmanaged municipal
market index such as the Bond Buyer 20 Index, the Merrill Lynch 500
Municipal Market Index or the Lehman Brothers Municipal Bond Index.
The Fund's investment characteristics are described more fully elsewhere
in this Prospectus.
DISTRIBUTIONS AND TAXES
How the Fund Pays The Fund will pay monthly dividends to shareholders at a level rate that
Dividends reflects the past and projected net income of the Fund and that results,
The Fund pays over time, in the distribution of substantially all of the Fund's net income.
Net income of the Fund consists of all interest income accrued on its port-
monthly dividends. folio less all expenses of the Fund accrued daily. To maintain a more sta-
ble monthly distribution, the Fund may from time to time distribute less
than the entire amount of net income earned in a particular period. This
undistributed net income would be available to supplement future distribu-
tions which might otherwise have been reduced by a decrease in the
Fund's monthly net income due to fluctuations in investment income or
expenses.Asa result, the distributions paid by the Fund for any particu-
lar monthly period may be more or less than the amount of net income
actually earned by the Fund during such period. Undistributed net income
will be added to the Fund's net asset value and, correspondingly, distribu-
tions from previously undistributed net income will be deducted from the
Fund's net asset value.
The Fund will declare dividends on the 9th of each month (or if the 9th is
not a business day, on the immediately preceding business day), payable
to shareholders of record as of the close of business on that day. This
distribution policy is subject to change,however, by the Board of Direc-
tors of the Fund without prior notice to or approval by shareholders. Divi-
dends will be paid on the first business day of the following month and
are reinvested in additional shares of the Fund at net asset value unless
you have elected that your dividends be paid in cash. Net realized capital
gains, if any,will be paid not less frequently than annually and will be
reinvested at net asset value in additional shares of the Fund unless you
have elected to receive capital gains distributions in cash.
18
9J1249
Tax Matters The following federal tax discussion is intended to provide you with an
overview of the impact of federal income tax provisions on the Fund and
its shareholders. These tax provisions are subject to change by legislative
or administrative action, and any changes may be applied retroactively to
Fund transactions. Because the Fund's taxes are a complex matter,you
should consult your tax adviser for more detailed information concerning
the taxation of the Fund and the federal, state and local tax consequences
to Fund shareholders.
Dividends are free The Fund intends to qualify, as it has every year since its inception, un-
from regular federal der Subchapter M of the Internal Revenue Code (the "Code") for tax treat-
income tax. ment as a regulated investment company, so that it will pay no federal
income tax on its investment income. The Fund also intends to satisfy
conditions that will enable it to pay"exempt-interest dividends" to its
shareholders. This means that you will not be subject to regular federal
income tax on Fund dividends you receive from income on Municipal
Obligations.
Your share of the Fund's taxable income, if any, from income on taxable
temporary investments and net short-term capital gains,will be taxable to
you as ordinary income. If in any year a Fund should fail to qualify under
Subchapter M for tax treatment as a regulated investment company, the
Fund would incur a regular corporate federal income tax upon its taxable
income for that year, and the entire amount of your distributions would be
taxable as ordinary income. Distributions, if any, of net long-term capital
gains are taxable as long-term capital gains, regardless of the length of
time you have owned Fund shares.You are required to pay tax on all
taxable distributions even if these distributions are automatically rein-
vested in additional Fund shares. Taxable distributions will not qualify for
the dividends received deduction for corporate shareholders.
The Code does not permit you to deduct the interest on borrowed funds
used to purchase or carry tax-free investments, such as Fund shares. Un-
der Internal Revenue Service rules, the purchase of Fund shares may be
considered to have been made with borrowed funds even though those
funds are not directly traceable to the purchase of those shares.
Because the net asset value of the Fund's shares includes net tax-exempt
interest earned by the Fund but not yet declared as an exempt-interest
dividend, each time an exempt-interest dividend is declared, the net asset
value of the Fund's shares will decrease in an amount equalto the
amount of the dividend.Accordingly, if you redeem Fund shares immedi-
19
91.249
ately prior to the record date of an exempt-interest dividend,you may
realize a taxable gain even though a portion of the redemption proceeds
may represent your pro rata share of undistributed tax-exempt interest
earned by the Fund.
The redemption or exchange of Fund shares normally will result in
capital gain or loss to shareholders.Any loss you may realize on the re-
demption or exchange of Fund shares held for six months or less will
be disallowed to the extent of any distribution of exempt-interestdivi-
dends received on these shares and will be treated as a long-term capital
loss to the extent of any distribution of long-term capital gain received on
these shares.
If you receive social security or railroad retirement benefits you should
note that tax-exempt income is taken into account in calculating the
amount of these benefits that may be subject to federal income tax.
The Fund may invest in private activity bonds, the interest on which is
not exempt from federal income tax to "substantial users" of the facilities
financed by these bonds or "related persons" of such substantial users.
Therefore, the Fund may not be an appropriate investment for you if you
are considered either a substantial user or a related person.
Although the Fund to date has not done so and has no present intention
of doing so,the Fund may invest up to 20%of its net assets in AMT
Bonds, the interest on which is a specific tax preference item for purposes
of computing the alternative minimum tax on corporations and individu-
als. If your tax liability is determined under the alternative minimum tax,
you will be taxed on your share of the Fund's exempt-interest dividends
that were paid from income earned on AMT Bonds.Additionally, certain
corporations which are subject to the alternative minimum tax may also
have to include exempt-interest dividends received in calculating their al-
ternative minimum taxable income in situations where a corporation's"ad-
justed current earnings" exceed its alternative minimum taxable income.
The Fund is required in certain circumstances to withhold 31%of taxable
dividends and certain other payments paid to non-corporate holders of
shares who have not furnished to the Fund their correct taxpayer identifi-
cation number (in the case of individuals, their social security number)
and certain certificates, or who are otherwise subject to back-up withhold-
ing.
Each January, the Fund will notify you of the amount and tax status of
Fund distributions for the preceding year.
m
913:1249
NET ASSET VALUE
Net asset value is Net asset value of the shares of the Fund will be determined by State
calculated daily. Street Bank and Trust Company, the Fund's custodian, as of 4:00 p.m.
eastern time on each day the New York Stock Exchange-is normally-open
for trading. The net asset value per share of the Fund will be computed by
dividing the sum of the value of the portfolio securities held by the Fund,
plus anycash or other assets, less liabilities,by the total number of
shares of the Fund outstanding. In determining the net asset value for the
Fund, the custodian uses the valuations of portfolio securities furnished
by a pricing service approved by the directors. The pricing service values
portfolio securities at the mean between the quoted bid and asked prices
or the yield equivalent when quotations are readily available. Securities
for which quotations are not readily available (which are expected to con-
stitute a majority of the securities held by the Fund) are valued at fair
value as determined by the pricing service using methods which include
consideration of the following:yields or prices of municipal bonds of com-
parable quality, type of issue, coupon, maturity and rating; indications as
to value from securities dealers; and general market conditions. The pric-
ing service may employ electronic data processing techniques and/or a
matrix system to determine valuations. The procedures of the pricing ser-
vice and its valuations are reviewed by the officers of the Fund under the
general supervision of its directors.
HOW TO BUY FUND SHARES
The Funds offer a You may buy shares of the Fund at the public offering price described
number of convenient below through firms which have sales agreements with Nuveen ("Autho-
ways to purchase rized Dealers") or by directing your securities representative to call
shares. Nuveen toll-free at 800-843-6765.You may pay for shares by Federal Re-
serve draft or by check made payable to "Nuveen Municipal Bond Fund,"
delivered to the securities representative through whom the investment is
to be made for forwarding to the Fund's shareholder services agent,Share-
holder Services, Inc. ("SSI").When making your initial investment,you
must also furnish the information necessary to establish your Fund ac-
count by completing and enclosing with your payment the attached Appli-
cation Form.After your initial investment,you may make subsequent
purchases at any time by forwarding to SSI a check in the amount of your
purchase made payable to "Nuveen Municipal Bond Fund" and indicating
on the check your account number.All payments must be in U.S. dollars
and should be sent directly to SSI at its address listed on the back cover
of this Prospectus.A check drawn on a foreign bank or payable other
than to the order of the Fund will generally not be acceptable.You may
21
qp
p Ju1.2"9
also wire Federal Funds directly to SSI, but you may be charged a fee for
this. For instructions on how to make Fund purchases by wire transfer,
call Nuveen toll-free at 800-621-7227.
Minimum Investment Generally, your first purchase of Fund shares must be for$1,000 or more.
Requirements Additional purchases may be in amounts of$100 or more. These mini-
mums may be changed at any time by the Fund. There are exceptions to
these minimums for shareholders who qualify under one or more of the
Fund's automatic deposit, group purchase or reinvestment programs.
These programs are explained in detail later in this Prospectus.
Offering Price of Fund The offering price of Fund shares is the applicable net asset value per
Shares share plus a sales charge. You may qualify for a reduced sales charge, or
the sales charge may be waived in its entirety, as described below under
Fund shares are "How the Sales Charge May Be Reduced or Waived." Fund sales charges
offered at their net are as follows:
asset value plus a Sales Charge Sales Charge Reallowance
sales charge, as%of Public es%of Net as%of Public
Amount of Purchase Offering Price Amount Invested Offering Price
Less than$100,000 4.75% 4.99% 4.25%
$100,000 but less than$250,000 3.75% 3.90% 3.25%
$250,000 but less than$500,000 2.75% 2.83% 2.50%
$500,000 but less than$1,000,000 2.00% 2.04% 1.75%
$1,000,000 but less than$2,500,000 1.00% 1.01% 0.90%
$2,500,000 but less than$5,000,000 0.75% 0.760/0 0.75%
$5,000,000 and over 0.50% 0.50% 0.50%
The Fund receives the entire net asset value of all of its shares that are
sold. Nuveen retains the full applicable sales charge from which it pays
the uniform reallowances shown above to Authorized Dealers. Upon no-
tice to all Authorized Dealers, Nuveen may reallow to Authorized Dealers
electing to participate up to the full applicable sales charge during peri-
ods and for transactions specified in the notice. The reallowances made
during these periods may be based upon attainment of minimum sales
levels. Further, Nuveen may from time to time make additional
reallowances only to certain Authorized Dealers who sell or are expected
to sell certainminimum amounts of the Fund or other Nuveen Mutual
Funds and Nuveen unit investment trusts ("Nuveen UITs") during speci-
fied time periods. The staff of the Securities and Exchange Commission
takes the position that dealers who receive 90% or more of the applicable
sales charge may be deemed underwriters under the Securities Act of
1933, as amended.
22
9wi249
Nuveen may also from time to time provide additional promotional sup-
port to certain Authorized Dealers who sell or are expected to sell certain
minimum amounts of Nuveen Mutual Funds and Nuveen UITs during spec-
ified time periods. Such promotional support may include providing sales
literature to and holding informational or educational programs for the
benefit of such Authorized Dealers' representatives, seminars for the pub-
lic, and advertising and sales campaigns.Any such support would be pro-
vided by Nuveen out of its own assets, and not out of the assets of the
Fund, and will not change the price aninvestor pays for shares or the
amount that the Fund will receive from such a sale.
The applicable sales charge on a purchase of Fund shares will be deter-
mined by aggregating all purchases on the same day by a single pur-
chaser of Fund shares and shares of Nuveen UITs and Nuveen Mutual
Funds on which-a sales charge is imposed.You or your securities repre-
sentative must notify Nuveen or SSI whenever you plan to make a pur-
chase of Fund shares on the same day as-a purchase of shares of a
Nuveen UIT or of another Nuveen Mutual Fund in order to qualify for a
reduced sales charge.
Certain commercial banks may make shares of the Fund available to their
customers on an agency basis. Pursuant to the agreements between
Nuveen and these banks, some or all of the sales charge paid by a bank
customer in connection with a purchase of shares may be retained by or
paid to the bank. Certain banks and other financial institutions may be
required to register as securities dealers in certain states.
How the Sales Charge Cumulative Discount. You may qualify for a reduced sales charge as
May Be Reduced or shown above on a purchase of Fund shares if the amount of your pur-
Waived chase,when added to the value of all prior purchases of shares of the
There are several Fund or of another Nuveen Mutual Fund on which a sales charge is im-
ways to reduce or posed, falls within the amounts stated in the table.
eliminate the sales Letter of Intent. You may qualify for a reduced sales charge as shown
charge.
above if you plan to purchase shares of long-term Nuveen Mutual Funds
over the next 13 months and the total amount of your purchases would, if
purchased at one time, qualify you for one ofthe reduced sales charges
shown above. In order to take advantage of this option,you must complete
the applicable section of the Application Form or sign and deliver either
to an Authorized Dealer or to SSI a written Letter of Intent in a form
acceptable to Nuveen. A Letter of Intent states that you intend, but are
not obligated, over the next 13 months to purchase a stated total amount
of shares that would qualify you for a reduced sales charge shown above.
23
921249
You may count shares of a long-term Nuveen Mutual Fund that you al-
ready own towards completion of your investment program,but you will
receive a reduced sales charge only on new shares you purchase with a
sales charge over the 13 months.You cannot count towards completion of
your investment program shares that you purchase without a sales charge
through investment of distributions from a Nuveen Mutual Fund or a
Nuveen UIT.
By establishing a Letter of Intent,you agree that your first purchase of
shares following execution of the Letter of Intent will be at least 5%of the
total amount of your intended purchases. You further agree that shares
representing 5%of the total amount of your intended purchases will be
held in escrow pending completion of these purchases.All dividends and
capital gains distributions on shares held in escrow will be credited to
your account. If total purchases, less redemptions, prior to the expiration
of the 13 month period equal or exceed the amount specified in your
Letter of Intent, the shares held in escrow will be transferred to your ac-
count. If the total purchases, less redemptions, exceed the amount speci-
fied in your Letter of Intent and thereby qualify for a reduced sales
charge,you will receive this reduced sales charge retroactively, and the
difference between it and the higher sales charge paid will be used to
purchase additional Fund shares on your behalf. If the total purchases,
less redemptions, are less than the amount specified, you must pay
Nuveen an amount equal to the difference between the amounts paid for
these purchases and the amounts which would have been paid if the
higher sales charge had been applied. If you do not pay the additional
amount within 20 days after written request by Nuveen or your securities
representative, Nuveen will redeem an appropriate number of your
escrowed shares to meet the required payment. By establishing a Letter
of Intent,you irrevocably appoint Nuveen as attorney to give instructions
to redeem any or all of your escrowed shares,with full power of substitu-
tion in the premises.
You or your securities representative must notify Nuveen or SSI whenever
you make a purchase of Fund shares that you wish to be covered under
the Cumulative Discount or Letter of Intent option.
Croup Purchase Programs. If you are a member of a qualified group,
you may purchase shares of the Fund or of another Nuveen Mutual Fund
at the reduced sales charge applicable to the group's purchases taken as
a whole.A"qualified group" is one which has been in existence for more
than six months, has a purpose other than investment, has five or more
participating members, has agreed to include Fund sales publications in
mailings to members and has agreed to comply with certain administra-
tive requirements relating to its group purchases.
24 9Z12449
t,
Under any group purchase program, the minimum monthly investment in
shares of any particular Fund or portfolio by each participant is $25, and
the minimum monthly investment in shares of any particular Fund or port-
folio for all participants in the program combined is $1,000. No certificates
will be issued for any participant's account. All dividends and other distri-
butions by the Fund will be reinvested in additional shares of the Fund.
No participant may utilize a systematic withdrawal program.
To establish a group purchase program, both the group itself and each
participant must fill out special application materials,which the group ad-
ministrator may obtain from the group's securities representative,by
checking the applicable box on the enclosed Application Form or by call-
ing Nuveen toll-free at 800-621-7227. See the Statement of Additional Infor-
mation for more complete information about "qualified groups" and group
purchase programs.
Investment of Nuveen UIT Distributions. Shares of the Fund may be
purchased without a sales charge at net asset value by investing the distri-
butions from any Nuveen UIT. There is no minimum initial or subsequent
investment requirement for these purchases. To obtain information on
share purchases through investment of Nuveen UIT distributions, check
the applicable box on the enclosed Application Form or call Nuveen toll-
free at 800-237-0910.
Special Sales Charge Waivers. Shares of the Fund may be purchased
at net asset value without a sales charge and in any amount by officers or
directors of the Fund and by bona fide, full-time and retired employees of
Nuveen, St. Paul, and subsidiaries thereof, including in each case these
individuals and their immediate family members (as defined below).
Shares may also be purchased at net asset value without any sales charge
by any person who, for at least 90 days, has been an officer, director or
bona fide employee of any Authorized Dealer for these shares and, in
each case, by these individuals and their immediate family members.Any
shares purchased this way must be acquired for investment purposes and
on the condition that they will not be transferred or resold except through
redemption by the Fund.You or yoursecurities representative must notify
Nuveen or SSI whenever you make a purchase of Fund shares that you
wish to be covered under these special sales charge waivers.
Shares of a Fund may also be purchased at net asset value without a
sales charge by bank trust departments investing funds over which they
exercise exclusive discretionary investment authority and that are held in
a fiduciary, agency, advisory, custodial or similar capacity. These pur-
chases will be subject to minimum purchase requirements as established
by the Funds.
as
9titi49
Shares of the Fund may also be issued at net asset value without a sales
charge in connection with a merger or consolidation with, or acquisition
of the assets of, other investment companies or similar companies.
In determining the amount of your purchases that may qualify for a re-
duced sales charge, the following purchases may be combined: (1) all pur-
chases by a trustee or other fiduciary for a single trust estate or fiduciary
account; (2) all purchases by individuals and their immediate family mem-
bers (i.e., their spouses and their children under 21 years of age); or (3)
all purchases made through a group purchase program as described
above.
The reduced sales charge programs may be modified or discontinued by
the Fund at any time upon prior written notice to shareholders of the
Fund.
For more information about the purchase of Fund shares,reduced sales charge
programs or to obtain the application forms required for some of them,call Nuveen
toll-free at 800-621-7227.
Other Ways to Purchase Automatic Deposit Plan. Once you have established a Fund account,
Shares you may make regular investments in your Fund in an amount of$25 or
more each month by authorizing SSI to draw preauthorized checks on
The Fund offers
your bank account. There is no obligation to continue payments and you
automatic purchase
plans and no-charge may terminate your participation at any time at your discretion. No
pa charge in addition to the applicable sales charge is made in connection
exchanges with other Nuveen Mutual with this Plan, and there is no cost to the Fund. To obtain an application
Fu form for the Automatic Deposit Plan, check the applicable box on the en-
closed Application Form or call Nuveen toll-free at 800-621-7227.
Payroll Direct Deposit Plan. Once you have established a Fund ac-
count,you may,with your employer's permission, make regular invest-
ments in Fund shares of$25 or more per pay period by authorizing your
employer to deduct this amount automatically from your paycheck. There
is no obligation to continue payments and you may terminate your partici-
pation at any time at your discretion. No charge in addition to the applica-
ble sales charge is made for this Plan, and there is no cost to the Fund.
To obtain an application form for the Payroll Direct Deposit Plan, check
the applicable box on the enclosed Application Form or call Nuveen toll-
free at 800-621-7227.
9a1249
The Power of Compound $35,000
Interest
30,000
t
25,000
=lir
t.
20,000
15,000
y f k rt k+7 li
10,000
5,000 pPIr7
.�
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Year
®6%Compound interest
5 5%Compound Interest
I•^ •I 4%Compound Interest
No Interest
Source:Nuveen Marketing Research Department
This chart shows the cumulative effect that compound interest can have
on a systematic investment program. In this example, it is assumed that
$100 is added to an investment account every month for 15 years. From
the same$1,000 beginning, the chart shows the amount that would be in
the account after 15 years, assuming no interest and interest compounded
annually at the rates of 4%, 5%and 6%.
27
921249
This chart is designed to illustrate the effects of compound interest, and
is not intended to predict the results of an actual investment in the Fund.
There are several important differences between the Fund and the hypo-
thetical investment program shown. This example assumes no gain or
loss in the net asset value of the investment over the entire 15-year peri-
od, whereas the net asset value of the Fund will rise and fall due to mar-
ket conditions or other factors,which could have a significant impact on
the total value of your investment. Similarly, this example shows three
steady interest rates over the entire 15-year period, whereas the dividend
rate of the Fund may fluctuate over time.
Exchange Privilege. You may exchange shares of the Fund-for shares
of any other Nuveen Mutual Fund with reciprocal exchange privileges, by
sending a written request to the Fund, c/o Shareholder Services, Inc., P.O.
Box 5330, Denver, CO 80217-5330. The shares to be purchased must be
offered in your state of residence and you must have held the shares you
are exchanging for at least 15 days. Shares of the Fund may be ex-
changed for shares of any other Nuveen Mutual Fund at net asset value
without a sales charge. Similarly, shares of other Nuveen Mutual Funds
purchased subject to a sales charge may be exchanged for shares of the
Fund at net asset value without a sales charge. Shares of any Nuveen
Mutual Fund purchased through dividend reinvestment or through invest-
ment of Nuveen UIT distributions may be exchanged for shares of the
Fund or any other Nuveen Mutual Fund without a sales charge. Ex-
changes of shares from any short-term Nuveen Mutual Fund will be made
into shares of the Fund or any other Nuveen Mutual Fund at the public
offering price,which may include a sales charge.
You must exchange shares whose total value at least equals the minimum
investment requirement of the Nuveen Mutual Fund being purchased. For
federal income tax purposes, any exchange constitutes a sale and pur-
chase of shares and may result in capital gain or loss. Before making any
exchange,you should obtain the Prospectus for the Nuveen Mutual Fund
you are purchasing and read it carefully. If the registration of the account
for the Fund you are purchasing is not exactly the same as that of the
fund account from which the exchange is made,written instructions from
all holders of the account from which the exchange is being made must be
received,with signatures guaranteed by a member of an approved Medal-
lion Guarantee Program or in such other manner as may be acceptable to
the Fund. You may also exchange shares by telephone if you authorize
telephone exchanges by checking the applicable box on the enclosed Appli-
cation Form or by calling Nuveen toll-free at 800-621-7227 to obtain an
authorization form. The exchange privilege may be modified or discontin-
a
9:112.19
ued by the Fund at any time upon prior written notice to shareholders of
the Fund.
Reinstatement Privilege. If you have redeemed shares of the Fund or
shares of any other Nuveen Mutual Fund that were subject to a sales
charge,you may reinvest without any added sales charge up to the full
amount of the redemption in-shares-of the Fund at net asset value at the
time of reinvestment. This reinstatement privilege can be exercised only
once for all or a portion of the shares you redeemed and must be exer-
cised within 30 days of the date of the redemption. The tax consequences
of any capital gain realized on the redemption will not be affected by rein-
statement,but a capital loss may be disallowed in whole or in part depend-
ing on the amount reinvested.
For more information about these purchase options and to obtain the application
forms required for some of them,call Nuveen toll-free at B00-621-7227.
Additional Information If you choose to invest in the Fund, an account will be opened and
maintained for you by SSI, the Fund's shareholder services agent. Share
certificates will be issued to you only upon written request to SSI, and no
certificates will be issued for fractional shares. The Fund reserves the
right to reject any purchase order and to waive or increase minimum
investment requirements. A change in registration or transfer of shares
held in the name of your securities representative's firm can only be made
by an order in good form from the securities representative acting on your
behalf.
Authorized Dealers are encouraged to open single master accounts.
However, some Authorized Dealers may wish to use SSI's sub-accounting
system to minimize their internal recordkeeping requirements.An Au-
thorized Dealer or other investor requesting shareholder servicing or
accounting other than the master account or sub-accounting service
offered by SSI will be required to enter into a separate agreement
with another agent for these services for a fee that will depend upon the
level of services to be provided.
Subject to the rules and regulations of the Securities and Exchange Com-
mission, the Fund reserves the right to suspend the continuous offering of
its shares at any time,but no suspension shall affect your right of redemp-
tion as described below.
as
9u 1249
HOW TO REDEEM FUND SHARES
You may require the Fund at any time to redeem for cash your shares of
the Fund at the net asset valuenext computed after instructions and re-
quired documents and certificates, if any, are received in proper form.
There is no charge for the redemption of shares.
The Fund offers a By Written Request. You may redeem shares by sending a written re-
variety of quest for redemption directly to the Fund, c/o Shareholder Services, Inc.,
redemption options. P.O. Box 5330, Denver, CO 80217-5330, accompanied by duly endorsed cer-
tificates, if issued. Requests for redemption and share certificates, if is-
sued, must be signed by each shareholder,with signature guaranteed by a
member of an approved Medallion Guarantee Program or in such other
manner as may be acceptable to the Fund,if the redemption proceeds
exceed$25,000 or are payable other than to the shareholder of record at
the address of record.You will receive payment equal to the net asset
value per share next determined after receipt by the Fund of-a properly
executed redemption request in proper form.A check for the redemption
proceeds will be mailed to you within seven days after receipt of your
redemption request.However, if any shares to be redeemed were pur-
chased by check within 15 days prior to the date the redemption request
is received, a Fund will not mail the redemption proceeds until the check
received for the purchase of shares has cleared,which may take up to 15
days.
By TEL-A-CHECK. If you have authorized telephone redemption and
your account address has not changed within the last 60 days, you can
redeem shares that are held in non-certificate form and that are worth
$25,000 or less by calling Nuveen at 800-621-7227.While you or anyone
authorized by you may make telephone redemption requests, redemption
checks will be issued only in the name of the shareholder of record and
will be mailed to the address of record. If your telephone request is re-
ceived prior to 2:00 p.m. eastern time, the shares redeemed will earn in-
come through the day the request is made and the redemption check will
be mailed the next business day. For requests received after 2:00 p.m.
eastern time, the shares redeemed earn income through the next business
day and the check will be mailed on the second business day after the
request.
By TEL-A-WIRE. If you have authorized TEL-A-WIRE redemption, you
can take advantage of the following expedited redemption procedures to
redeem shares held in non-certificate form that are worth at least$1,000.
You may make TEL-A-WIRE redemption requests by calling Nuveen at
800-621-7227. If a redemption request is received by 4:00 p.m. eastern
30
90 1.A 19
time, the redemption will be made as of 4:00 p.m. that day. If the redemp-
tion request is received after 4:00 p.m. eastern time, the redemption will
be made as of 4:00 p.m. the following business day. Redemption proceeds
will normally be wired on the second business day following the redemp-
tion, but may be delayed one additional business day if the Federal Re-
serve Bank of Boston or the Federal Reserve Bank of New York is closed
on the day redemption proceeds would ordinarily be wired. The Fund re-
serves the right to charge a fee for TEL-A-WIRE.
Before you may redeem shares by TEL-A-CHECK or TEL-A-WIRE,you
must complete the telephone redemption authorization section of the en-
closed Application Form and return it to Nuveen or SSI. If you did not
authorize telephone redemption when you opened your account,you may
obtain a telephone redemption authorization form by writing the Fund or
by calling Nuveen toll-free at 800-621-7227. Proceeds of share redemptions
made by TEL-A-WIRE will be transferred by Federal Reserve wire only to
the commercial bank account specified by the shareholder on the applica-
tion form.You must send a written request to Nuveen or SSI in order to
establish multiple accounts, or to change the account or accounts desig-
nated to receive redemption proceeds. These requests must be signed by
each account owner with signatures guaranteed by a member of an ap-
proved Medallion Guarantee Program or in such other manner as may be
acceptable to the Fund. Further documentation may be required from cor-
porations, executors, trustees or personal representatives.
The Fund reserves the right to refuse telephone redemptions and, at its
option, may limit the timing, amount or frequency of these redemptions.
This procedure may be modified or terminated at any time, on 30 days'
notice,by the Fund.
For the convenience of shareholders, the Fund has authorized Nuveen as
its agent to accept orders from securities representatives by wire or tele-
phone for the redemption of Fund shares.The redemption price is the
first net asset value determined following receipt of an order placed by
the securities representative. The Fund makes payment for the redeemed
shares to the securities representatives who placed the order promptly
upon presentation of required documents with signatures guaranteed as
described above. Neither the Fund nor Nuveen charges any redemption
fees. However,your securities representative may charge you for serving
as agent in the redemption of shares.
Automatic Withdrawal Plan. If you own Fund shares currently worth
at least$10,000,you may establish an Automatic Withdrawal Plan by com-
pleting an application form for the Plan. You may obtain an application
q (] 31
19 9:12
form by checking the applicable box on the enclosed Application Form or
by calling Nuveen toll-free at 800-621-7227.
All dividends and other distributions on Fund shares will be automatically
reinvested in additional shares of the Fund at net asset value. The Plan
permits you to request periodic withdrawals on a monthly, quarterly,
semi-annual or annual basis in an amount of$50 or more. Depending
upon the size of the withdrawals requested under the Plan and fluctua-
tions in the net asset value of Fund shares, these withdrawals may reduce
or even exhaust your account.
The purchase of Fund shares, other than through reinvestment, while you
are participating in the Automatic Withdrawal Plan will usually be disad-
vantageous because you will be paying a sales charge on any shares you
purchase at the same time you are redeeming shares.
The Fund may suspend the right of redemption of Fund shares or delay
payment more than seven days (a) during any period when the New York
Stock Exchange is closed (other than customary weekend and holiday
closings), (b) when trading in the markets the Fund normally utilizes is
restricted, or an emergency exists as determined by the Securities and
Exchange Commission so that trading of the Fund's investments or deter-
mination of its net asset value is not reasonably practicable, or (c) for any
other periods that the Securities and Exchange Commission by order may
permit for protection of Fund shareholders.
The Fund may, from time to time, establish a minimum total investment
for Fund shareholders, and the Fund reserves the right to redeem your
shares if your investment is less than the minimum after giving you at
least 30 days' notice. If any minimum total investment is established, and
if your account is below the minimum, you will be allowed 30 days follow-
ing the notice in which to purchase sufficient shares to meet the mini-
mum. So long as the Fund continues to offer shares at net asset value to
holders of Nuveen UITs who are investing their Nuveen UIT distributions,
no minimum total investment will be established for the Fund.
GENERAL INFORMATION
If you have any questions about the Fund or other Nuveen Mutual Funds,
call Nuveen toll-free at 800-621-7227.
32
91 19
Custodian and Transfer and Shareholder Services Agent. The Custo-
dian of the assets of the Fund is State Street Bank and Trust Company,
225 Franklin Street, Boston, MA 02110. The Fund's transfer, shareholder
services and dividend paying agent, Shareholder Services, Inc., P.O. Box
5330, Denver, CO 80217-5330, performs bookkeeping, data processing and
administrative services for the maintenance of shareholder accounts.
Organization. Nuveen Municipal Bond Fund, Inc. is an open-end diversi-
fied management investment company under the Investment Company Act
of 1940. The Fund was incorporated in Maryland on October 8, 1976. Its
authorized capital stock consists of a single class of 300,000,000 shares
of common stock, $.10 par value. All shares have equal non-cumulative
voting rights and equal rights with respect to dividends, assets and liqui-
dation. Shares are fully paid and non-assessable when issued and have no
preemptive, conversion or exchange rights.
33
or.os
APPENDIX A—TAXABLE EQUIVALENT YIELD TABLES
Taxable Equivalent Yield The following tables show the effects for individuals of federal income
Tables and the Effect of taxes on:
Taxes and Interest Rates
on Investments • what you would have to earn on a taxable investment to equal a given
tax-free yield; and
• the amount that those subject to a given tax rate would have to put into
a tax-free investment in order to generate the same after-tax income as
a taxable investment.
These tables are for illustrative purposes only and are not intended to
predict the actual return you might earn on a Fund investment. The Fund
occasionally may advertise its performance in similar tables using other
current tax rates than those shown here. The tax rates used in these ta-
bles are based upon published 1993 marginal federal tax rates and do not
take into account changes in tax rates that are proposed from time to
time. They reflect the current federal tax limitations on itemized deduc-
tions and personal exemptions,which may raise the effective tax rate and
taxable equivalent yield for taxpayers above certain income levels. The
tax rates shown here may be higher or lower than your actual tax rate. A
higher tax rate would tend to make the dollar amounts in the third table
lower,while a lower tax rate-would make the amounts higher.You should
consult your tax adviserto determine your actual tax rate.
NUVEEN MUNICIPAL BOND FUND
Marginal Tax Rates for Federal
Joint Taxpayers With Four Federal Adjusted Tax-Free Yield
Personal Exemptions Taxable Gross 4.00% 4.25% 4.50% 4.75% 500% 5.25% 5.50% 5:75% 6.00%
Income Income Federal
(1,000's) (1,000's) Tax Rate Taxable Equivalent Yield
$ 0-36.9 $ 0-108.5 15.0% 4.71 5.00 5.29 -5.59 5.88 6.18 6.47 6.76 7.06
36.9-89.2 0-108.5 28.0 5.56 5.90 6.25 6.60 6.94 7.29 7.64 7.99 8.33
108.5-162.7 29.0 5.63 5.99 6.34 6.69 7.04 7.39 7.75 8.10 8.45
Over 89.2 0-108.5 31.0 5.80 6.16 6.52 6.88 7.25 7.61 7.97 8.33 8.70
108.5-162.7 32.0 5.88 8.25 6.62 6.99 7.35 7.72 8.09 8.46 8.82
162.7-285.2 34.5 6.11 6.49 6.87 7.25 7.63 8.02 8.40 8.78 9.16
Over 285.2 32.0 5.88 6.25 6.62 6.99 7.35 7.72 8.09 8.46 8.82
Marginal Tax Rates for Federal
Single Taxpayers With Federal Adjusted Tax-Free Yield
One Personal Exemption Taxable Gross 4.00% 4.25% 4.50% 4.75% 5.00% 5.25% 5.50% 535% 6.00%
Income Income Federal
(1,000's) (1,000's) Tax Rate Taxable Equivalent Yield
$ 0-22.1 $ 0-108.5 15.0% 4.71 5.00 5.29 5.59 5.88 6.18 6.47 6.76 7.06
22.1-53.5 0-108.5 28.0 5.56 5.90 6.25 6.60 6.94 7.29 7.64 7.99 8.33
Over 53.5 0-108.5 31.0 5.80 6.16 6.52 6.88 7.25 7.61 7.97 8.33 8.70
108.5-231.0 32.5 5.93 6.30 6.67 7.04 7.41 7.78 8.15 8.52 8.89
Over 231.0 32.0 5.88 6.25 6.62 6.99 7.35 7.72 8.09 8.46 8.82
For an Equal After-Tax 4.0% 4.5% 5.0% 5.5% 6.0%
Return,Your Tax-Free $50,000 Investment Tax-Free Tax-Free Tax-Free Tax-Free Tex-Free
Investment May Be Less` Compare 4%taxable $34,500 $30,667 $27,600 $25,091 $23,000
Compare 5%taxable $43,125 $38,333 $34,500 $31,364 $28,750
For example, $50,000
in a 6% taxable Compare 6%taxable $51,750 $46000 $41,400 $37,636 $34,500
investment earns the Compere 7%taxable $60,375 $53,667 $48,300 $43,909 $40,250
same after-tax return Compare 8%taxable $69,000 $61,333 $55,200 $50,182 $46,000
as$41,400 in a 596 The dollar amounts in the table reflect a 31.0%federal tax rate.
tax-free Nuveen
investment.
A-2
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z
Nuveen Municipal Bond Fund, Inc.
Supplement to Prospectus Dated April 23, 1993
Portfolio Management Overall portfolio management strategy and the day-to-day management
of the Fund is the responsibility of Thomas C. Spalding,Jr.,a Vice
President of the Fund's Adviser and of the Fund. Mr. Spalding has been
employed by John Nuveen&Co. Incorporated since 1976 and by the
Adviser since 1978, and has served as portfolio manager for the Fund
since August, 1978. Mr. Spalding has responsibility with respect to the
portfolio management of all Nuveen open-end and exchange traded-funds --
managed by the Adviser.
Consistent with the Fund's investment objectives,the day-to-day
management of the Fund is characterized by an emphasis on value
investing, a process that involves the search for Municipal Obligations
with favorablecharacteristics which, in the Adviser's judgment,have not
yet been recognized in the marketplace.The process of searching for
such undervalued or underrated securities is an ongoing one which
draws upon the resources of the portfolio managers of the various Nuveen
funds and senior management of the Adviser.All portfolio management
decisions are subject to weekly review by the Adviser's management and
to quarterly review by the Fund's Board of Directors.
Shares of the Fund are wit deposits or obligations of,or endorsed or guaranteed by,
any bank,nor are they insured by the Federal Deposit Insurance Corporation or any
other governmental agency.
9fl2i9
Financial Highlights The following financial information has been derived from the Fund's
financial statements,which have been audited by Arthur Andersen&Co.,
independent public accountants,as indicated in their report appearing
in the Fund's Annual Report to Shareholders, and should be read in
conjunction with the financial statements and related notes appearing in
the Annual Report.
Selected data for a share of common stock outstanding throughout each
period is as follows:
Income from Ratios/Supplemental Data
Investment
Operations Ratio
of Net
_ Net Invest-
Realized Less Distributions Ratio of meet
and Dividends Total Expenses Income
Net Asset Net Unrealized from Net Distibu- Return to to
Value Invest- Gain(Loss) Invest- tons from Net Asset on Net Net Assets Average Average Portfolio
Beginning ment from meet Capital Value End Asset End of Period Net Net Turnover
Muni Bond of Period Income Investments Income -Gains of Period Value (in thousands) Assets Assets Rate
Year Ended 2/28/93 $9.080 $.554 $.363 $(.544) $(.003) $9.450 11.05% $2,371,669 .61°/v 5.95°/m 14%
5 Moe.Ended 2129/92 9.040 .239 .080 (.239) (.040) 9.080 3.5/1 1,635,708 .62t 6.24t 6
Year Ended 9/30,
1991 8.650 .579 .438 (.589) (.038) 9.040 12.15 1,661,420 .60 6.48 10
1990 8.730 .596 (.080) (.596) - 8.650 6.04 1,323,623 .62 6.78 8
1989 8.520 .597 .239 (.597) (029) 8.730 10.07 1,119,833 .64 6.85 12
1988 8.020 .596 .536 (.596) (.036) 8.520 14.50 945,361 .65 7.11 8
1987 8.780 .598 (.614) (.598) (.146) 8.020 (.39) 764,301 .68 6.85 16
1986 7.830 .595 1.162 (.595) (.212) 8.780 23.02 668,416 .71 6.95 39
1985 7.180 .586 .650 (.586) - 7.830 17.73 459,627 .73 7.68 28
1984 7.400 .569 (.220) (.569) — 7.180 4.97 337,464 .74 7.91 44
tAeenvalized
Further information about the investment performance of the Fund is
contained in the Fund's Annual Report to Shareholders,which may be
obtained without charge by writing to the Fund,333 West Wacker Drive,
Chicago,Illinois 60606.
July 1, 1993.
NUVEEN
xr
October 31, 1992 -s
NUVEEN EXCHANGE -TRADED FUNDS ANNUAL REPORT
sx
Nuveen rusektm nt Quality Municipal Fund
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CHAIRMAN ' S LETTER
Dear Shareholder, capture high-quality bonds that often appreciate in value.The presi-
This is the first annual report consolidating several of Nuveen's dential election also affected the municipal market with analysts
national leveraged exchange-traded funds.Over the past several focusing on the new administration's-glans to stimulate the ecou-
years,there has been considerable growth in the Nuveeu family of omy by funding infrastructure and encouraging investment tax
tax-free open-end and exchange-traded municipal bond funds.As of credits. Expectations of higher taxes for the top-bracket also stimu-
October 31,Nuveen managed 40 exchange-traded funds,six lated demand for tax-free investments.
exchange-traded portfolios and 21 open-end funds.The expanded Though these new fund reports offer an opportunity
breadth of the Nuveen product family has caused us to reconsider to compare and contrast similar investments,we want to point out
how we report on the performance of our funds. that we maintain a consistent portfolio management approach for
Before f discuss some of the changes in this report, each Nuveen fund—an approach we call value investing.
I'd like to assure you that our new reporting procedures do not Value investing is a shared process at Nuveen.Fund
change the manner in which we manage Nuveen investments. managers,along with Nuveen research analysts,engage in con-
Ntiveen funds-continue to be managed by seasoned bond portfolio start review and analysis of literally billions of dollars of municipal
specialists who are guided by proven investment strategies bond issues every year.Through value investing,we take into
designed to meet investors'long-term financial goals.This commit- account price,yield,credit history and the-economic and political
ment remains the foundation of our fund management strategy. factors affecting individual bonds available for Nuveen funds.This
From now on,Nuveen funds with similacportfolios approach helps us to identify undervalued bonds that we believe
or characteristics will be grouped together in the same report.To will provide attractive current yields and exceptional value over
accomplish this,-we have changed the fiscal year-ends of some of time for all Nuveen investors.
the funds.This current report details the performance of four We thank you for the confidence you have shown in
Nuveen leveraged national exchange-traded funds for the fiscal year Nuveen and our family of municipal-bond funds.We look forward to
ended October 31, 1992. serving your tax-free investment needs in the future.
The new format provides an opportunity to discuss
issues pertaining to the funds in greater detail. In this report,for Sincerely,
example,we concentrate on various aspects of the national econ-
omy and the possible impact on the municipal bond market.Though
the economy has been troubled,it remains dynamic and diverse.
Nineteen ninety-two saw a record volume of municipal issues �•
resulting in a 6%increase in new money financings over last year. Richard J.Franke
At the same time,persistently low interest rates created=a surge in Chairman of the Board
advance refunding,offering fund managers a unique opportunity to December 11, 1992
921249
1' EItFO MANCF OF TIII? F1` NUS
Nuveen Investment Share Price Net Asset Value Per Share Total Return
(12 mos.ended 10/31/92)
Quality Municipal
Fund(NOM)
The annualized tax-free yield of NOM,
based on its October 31 share price
of$15 3/4,was 7.24%.To obtain an tls 3/
equivalent yield from a fully taxable 1 S75
investment,investors subject to the $is 216,13 4f
regular federal tax rate of 31%would 12.gf°l°
have had to receive 10.49°/o.
°
Total Return Taxable—Equivalent
10/31/91 10/3792 10/31/91 10/31/92 on NAV* Total Return**
Nuveen Select Quality Share Price Net Asset Value Per Share Total Return
(12 mos.ended 10/31/92)
Municipal Fund(NOS)
The annualized tax-tree yield of NOS,
based on its October 31 share price of
$14 3/4,was 7.16°/c.To obtain an
equivalent yield from a fully taxable
investment,investors subject to the Nam kit
regular federal tax rate of 31%would 2ls 2144
have had to receive 10.38%. $66
9.33,/°
Total Return Taxable—Equivalent
10/31/91 10/31/92 10/31/91 10/31/92 on NAV* Total Return**
*Total return on net asset value—the combination of reinvested dividend ineorlle,ref a rested capital gains distibution, if any,and
changes in net asset value is widely considered to be the best indicator of a fund's performance.Source.:Lipper Analytical Services,Inc.
"An investor.subject to the 31%regular federal income tax would have had to receive this retain,from a fully taxable investment to
equal the total return on NAVsho-t ,at left in the.same chart.
2 931249
Nuveen Quality Share Price Net Asset Value Per Share Total Return
(12 mos.ended 10/31/92)
Income Municipal
Fund (NQU)
The annualized tax-tree yield of NQU,
based on its October 31 share price
of$14 1/4,was 7.07%.To obtain an
equivalent yield from a fully taxable 91
investment,investors subject to the 61 q1A 9164
regular federal tax rate of 31%would 45/4 5j4'09 1 t91y
have had to receive 10.25%.
9,6$44
Total Return Taxable—Equivalent
10/31/91 10/31/92 10/31/91 10/31/92 on NAV* Total Return**
Nuveen Premier Share Price Net Asset Value Per Share
Municipal Income
Fund(NPF)
The annualized tax-free yield of NPF,
based on its October 31 share price of
$14,was 6.66%.To obtain an equivalent
yield from a fully taxable investment,
investors subject to the regular federal 61$ 514 5j4,61
51
tax rate of 31%would have had to q 10
receive 9.94%.
12/19/91 10/31/92 12/19/91 10/31/92
Inception Inception
*Total return on net asset value—the combination of reinvested dividend income,reinvested capital gains distribution,if any,arut
changes in net asset value—is widely considered to be the best indicator of a fund's performance.Source:Lipper Analytical Services,Inc.
**An investor subject to the 31%regular federal income tax mould have had to receive this return front a fully taxable investment to
equal the total return on NAV shown at left in the same chart.
9212493
POltTFOLIO PI; RSPI' (` TIVI;
During 1992,three major factors influenced the-municipal bond original bond issue while the.new bonds are secured by revenue of
market:low short-term interest rates,a surge of refunding activity, the hospital. Since the coupon rate on the original bonds is typically
and narrow quality spreads.During this period,Nuvicen's.portfolio much higher than current coupons-and the issue is now secured by
strategy-has been to remain fully invested in bonds that would per- government securities,refunded bonds often appreciate in value.
form well in this,and other,:market environments.Nuveen's value Upon application to the rating agencies,an advance refunded bond
investing approach to portfolio-management,which stresses the usually is upgraded to AAA.The original bonds remain outstanding
purchase of undervalued issues that we believe will provide attrac- until a predetermined date,either atall date or the original
tive current yield-and long-term value,helped fund managers to maturity date.
identify profitable opportunities in the 1992 market that will benefit Bond fund performance has been further enhanced
Nuveen fund investors now and in the future. by a tightening of quality spreads during the year. Since the yield
Several developments fueled a strong demand for differential—or quality spread—between A and AAA rated
municipals throughout the year.Due to sustained low short-term -bonds has been narrow,insured bonds and highly rated revenue
interest rates,investors sought alternatives to low-yielding -bonds have-been attractive. Despite the recession,many municipal
certificates of deposit and money market funds.Many chose long- utilities have maintained a.high level of debt service coverage by
term bond funds to increase current yield.Reinvestment of cash providing essential services to the public. Insured bonds and rev-
from the strong-upswing in called bonds provided investment enue bonds issued by large issuers are highly liquid and have pro-
monies that fueled additional municipal bond demand.And,by vided stable credit quality during this-period of economic weakness.
year's end,the anticipation that the Clinton administration will
advocate higher taxes increased the appeal of tax-exempt municipal Midwest Strength
investing. Many states exempt the interest on municipal bonds from state
Municipal bond supply was heavy in 1992 due to income taxes.Bonds-issued in such states normally trade at
refunding activity.-For the first ten months of the year,bond higher prices and lower yields than bonds issued in states that tax
issuance totaled$191.5 billion,up 4V%from the first ten months in the interest on in-state-municipal bonds.On occasion,these bonds
1991.Since bond issuance for new projects has been modest in trade at yields close to national levels,-providing an opportunity for
1992,the bulk of 1992 issuance has been due to refunding of debt appreciation if the demand for paper in those states increases.
due to the relatively low interest rate environment. Midwest-derived issues have had a positive effect on
The overall performance of tax-exempt bond funds national funds during the year.For example,Illinois paper provides
has been enhanced by this surge in refunding activity.For example, additional yield for a national fund because interest on locally-
many hospital revenue bonds,purchased for bond funds when issued municipal bonds is not exempt from the state income tax.
interest rates were significantly higher,haveappreciated in value Management has also found bonds issued in the Midwest to be a
due to advance refunding.With an advance refunding,proceeds of good value based on credit-quality.The Midwest as a whole has
a new bond issue are invested in C.S.government securities.The fared well during the recession while the coasts have-been affected
cash flow from these securities is used to pay debt service on the more severely.
4 931249
Municipal Market Outlook The demand for municipals is expected to remain
Projections of limited volume and steady demand suggest a strong high,particularly in states witRhigh income tax rates. If the long
market in 1993. Due to a projected decline in refunding activity, awaited recovery takes place,credit quality of municipal issuers
reduced volume is anticipated in 1993. Unless interest rates drop will henefit.The funds.managers,supported by Nuveen Research,
substantially,ref findings should diminish as fewer issuers remain will continue to evaluate the full scope of the nnmicipalnut.rket in
who have not restructured their debt to take advantage of lower order to target undervalued issues that should provide attractive
rates.At the same time,bond issuance for new projects is expected to current yields and exceptional long-term value.
increase in step with growth in UNI'at about 21h to:3%annually—
which should offset some of the slippage in refunding activity.
Ja. 1 5
Nuveen Exchange-Traded Funds
Annual Report
October 31,1992
PORTFOLIO OF INVESTMENTS
Nuveen Investment Quality Municipal Fund, Inc. (NOM)
Principal Market
Amount Description Ratings* Value
Alaska-2.2%
S 10,2.501100 .Alaska I lousing finance Corporation. Insured Mortgage Program.7.500"+, 12/01/30 Aa S 17,1125.775
Arizona-4.0%
Arizona(\•hmieipal Financing Program:
111,11110,1100 S.11111'0.7/05/115 At 10,300.100
20.355,000 510(1'Yii,7!05.1:3 Al 20,075,067
Colorado-2.3%
51100,700 Colorado health Facilities Authority.Retirement Housing'(Liberty Heights). 10.5004,7/01/_20 N/R 3,500,000
1,010,000 Castle Pines Metropolitan District General Obligation,7.li25Mo, I2/(11/I6 AAA 5,324.570
13,4511,000 City and County or Denver;Airport System,10.5(111'm, 12/01/011 Baal Ii,809.063
?.000,0110 ('ily and County of limner Airport SysteM.,AIternati'e fatininnnn Tax,tynaa!ii, 11/15/25 Baal 2,087.3110
District of Columbia-2.2%
16,110,000 District oFCulumbin Ilou,ing Finance Agency,Allernndice Minimum'Fax,5.100+ 122/01/22:3 AAA 121.028.871
Florida-8.5%
23.750.000 Hernando County Criminal Justice Complex Finauc(ug I'rogrlun,8.000'(u,7.111/10
(Mandatory put Tot 15) Ana 23,(387,113011
-1 0011,000 Hillsborough County Port District (Pampa Port Authority),8.250^'.13/(I1/110 Baal 1,310,080
19,44'.5,01111 .lackson).ille Health Facilities.Alaburity(Daughters ot(''harity Health System-St.Vincent),
7.51101, I I'l1115 An 20,(102,840
Orange County I lousing finance Authority.
4,125,000 7.51)041,7/111!10 Ana 1,000,801
12.3811,000 7.00IR'ag, I/4)1/21 Atom 1:3,101,01)
Georgia-6.5%
Vlunieipal Electric Authority o1 Georgia'.
5,900,000 h,375'H. 1/01/10 AA— (1,702,180
it350.171111 5.12.5'41-I41447 AA— 5,870,393
5.000,000 Sa 7:440 1/111^_'0 ;A:A— 5.613.950
(3.565.000 .Atlanta Urban Residential Finance Authority.Single Cannily(NN AI.A)..AIternalive,Minimum
S.25000, 0501/21 AAA 7,012,273
Hulce County Development Authorit),Pollution Control(Georgia Power Company):
5,00111)1111 I2_2511'+,8/014 I Baal 5,00(1.450
5.011111)011 1475014). 11111g 1 Baal 5,733.451)
,5131111,111111 111131104fi, 111/111 1S Baal 0.543,188
7.325.000 Wayne County Development .Authority_Solid Waste Ilisposal(1'1"I'Rayonier Inc.).Alternative
\lininulln Tax.5.001241,71111.'10 A+ 7,780,322
Illinois-5.7%
50(10,(100 Illinois I ealth Facilities.authority(SeryantC'or),7.8750u.5/1..419 131111+ 5,180.551)
3.306.000 Illinois health l'acililies Authority(Riverside Senior Living(''enter Project).7.51111"'0, 11/1)1/20 A 3.42(1(100
39711,0011 Illinois I lousing Development Authority.Residential}lorigage.Alternative Minimal ill"Par-
0lrra,2/111/21 Aa 8,000,938
4.(111(1(IIIII State of Illinois,Dedicated Tax(Civic('enLu) 0.6(111''ii. 1"15/15(Ihe-retuuded to (?/15/95) Aaa -1,712.000
Sr('nett O//migliar/note's to lioneeirtl.slnlrgrr'Irl5, 921249
Principal Market
Amount Description Ratings* Value
Illinois-(Continued)
$ 7,500,000 Community College District No.508,Cook County,8.750%, 1/01/07 Aaa $ 9,108,975
4,650,000 Peoria,Pekin and Waukegan,GNMA Collateralized Mortgage,Alternative Minimum Tax,
7.875%,8/01/22 AAA 4,831,908
6,250,000 Regional Transportation Authority,9.000%,6/01/07 Aaa. 7,707,500
Southwestern Illinois Development Authority(La('lede Steel Company),Alternative Minimum Tax:
775,000 8.375%,8/01/08 A— 820,772
5,405,000 8.500°h.8/01/20 A— 5,806,321
Kentucky-0.9%
2,500,000 Kentucky Development Finance Authority(Ashland Hospital Corporation),9.750%,8/01/11 BBB+ 2,817,475
3,990,0(10 Kentucky Housing Corporation,Alternative Minimum Tax,8.100%, 1/01/22 AAA 4,193,570
Louisiana-5.3%
18,760,000 Louisiana Public Facilities Authority(West Jefferson Medical Center),7.900°/x, 12/111/15 Aaa 20,765.819
5,4611,000 East Baton Rouge Mortgage Finance Authority,Alternative Minimum Tax,7.875%,8/01/23 Aaa 5,744,903
11,545,00(1 Orleans Parish School Board,9.0(10%,2/01/09 Aaa 14,922,259
Maine-1.5%
11,340,000 Maine State Housing Authority,Alternative Minimum Tax,8.100%, 11/15/22 Al 11,922,763
Maryland-0.3%
2,000,000 Gaithersburg Economic Development Revenue(Asbury Methodist Home),7.850%, 1/01/20 N/R. 2,080,400
Massachusetts-8.0
5,035,01(0 Mass(tell u sett s I lealth and Educational Facilities Authority(Massachusetts General Hospital),
7.750%,7/01/20 Aaa 5,342R91
10,600,000 Massachusetts Health and Educational Facilities Authority(Goddard Memorial Hospital),
9.000%,7/01/15 BBB 111844,228
7,500,1100 Massachusetts Housing Finance Agency,Alternative Minimum Tax,8.100%,8/01/23 A+ 7,966,350
Massachusetts Water Resources Authority:
15,000,000 7.625%, 1/01/14 A— 10,105,650
4,000,000 7.500%,4/01/16 A— 4,260200
16,250,000 Roston City Hospital Revenue(FHA Insured Mortgage),7.625%,2/15/21 AA 17,431,050
Minnesota-1.fi%
11,730,000 St. Paul Housing-and Redevelopment Authority.0.250"/, 12/01/97 Aaa 12,763,648
Mississippi-0.9%
3,450,(1110 Mississippi Ilona(Corporation,9.250%,3/01/12 Aaa 3,661,554
3,250,000 Mississippi Housing Finance Corporation,Single Family Mortgage(GNMA),Alternative Minimum
Tax,8.250%,10/15/18 Aaa 3,483,480
Nevada-0.8%
5,400,000 State of Nevada General Obligation,Limited Tax,8.000'4x, 10/01/15(Pre-refunded to 10/01/97) Ma 6,175,440
New Mexico-1.2%
9,400,000 Los Alamos County Utility System,7.750%, 1/01/15 Baal 9,794,048
9:1249 7
Nuveen Exchange-Traded Funds
Annual Report
October 31.1992
PORTFOLIO Of INVESTMENTS
Investment Quality - eon tin ned.
Principal Market
Amount Description Ratings* Value
New York-16.7%
5 8,960,000 Dormitory Authority-of the State of New lurk(Stale University).7.250%,5/1.5/15 Baal $ 9,177,907
Dormitory Authority of the State of New York(City University):
5,890,000 9.250'%0,7/01/98 Baal 6,958,858
14235,000 8.750%,7/01/0" Baal. 16,809,115
10,000,000 /875%,7,01/17 Baal 10,838,600
10,0001,000 NOW York State Medical Care Facilities Finance Agency(Columbialresbyterian),8.000°/n.2/15/25 AA 10,920,300
5,000,000 New York State Medical('arc Facilities Finance.Agencv(SI.Luke's-Roosevelt Hospital Center),
7.450%.2/15/29
Aaa 5,365,550
3,500,000 New York State Mortgage Agency,Homeowner Mortgage Revenue_Alternative Minimum Tax,
7.9501%,4/01/"9 Aa 3,686,550
Metropolitan Transportation Authority:
6,270,0)10 8.100"%",7/01/17 BBB+ 6,661,123
3,155,000 8.100'8,,7/(11/17 Aaa 3,342,691
4,795,0011 8,100"'/".7/01/17(Pre-refunded 0,7/1)1/93) Aaa 5,077,829
6,655,000 Municipal Assistance Corporation for the lily of New York.6.875"y",7411/07 AA— 6,916,542
New York City Municipal Water Finance Authority:
10,200,000 7.500"/",6/15/19(Pre-refunded to 6/1.5/00) A— 11,590,974
11,500,000 G 000"/0,6/15/20 A— 10,364,490
4,2011,000 New York City Industrial Development Agency(American Airlines,Inc.).Alternative Minimum Tax,
8.011100",7/01/20
Baal 4,421,970
16,900,000 Triborough Bridge and Tunnel Authority,General Purpose Revenue,7,625'),. 1/01/14
(I'rci'efunded to 1/011/96) Aaa 18,745,649
North Carolina-0.7%
5,000,000 North Carolina Municipal Power Agency No. 1 (Catawba),8.500%. 1111/17 A 5,568,250
Oklahoma-0.6%
4,500,000 Tulsa Municipal Airport Trust(American Airlines,Inc.),9..500%,6/01/20 A3 4,934,835
Oregon-0.4%
2,500,000 Oregon Department of General Services Certificates of Participation.7.500%,9/1)1/15
(Pre-refunded to 9/01/0(1) Aaa 2,862,725
Pennsylvania-3.2%
9,0001,000 Pennsylvania Housing Finance Agency,Single Family Mortgage,All ornal ive Ni in imam Tax,
7.650"/%, 10/011/23 AA 9,352,890
4,905,000 McKean County Hospital Authority(Bradford Hospital),8.875%.10/01/20 BBB— 5,359,595
Philadelphia Water and Reeser:
1,800,000 9.000"A,, 10/0)/01 BBB 1,990,638
3,500,000 9.100%, 10/111/11" BBB 3,892,035
50011)00 9.100%, 12/01/0" BBB 548,990
2,760000 9.100%. 12/01/1)3 BBB 3,032,854
1,105,000 9.100'%,. 1-2/01/04 BBB 1,214,240
South Carolina-3.1%
4,000,000 South Carolina State Housing finance Authority,Alternative Minimum Tax,7.750'%',7/01/22 M 4,150,520
•
19,800,000 Piedmont Municipal Power Agency,7,250"/", 1/01/29 A— 20,361,726
See accompanying/rotes to/Yaoncialstatements. 9���.�9
Al 2
8
Principal Market
Amount Description Ratings* Value
South Dakota-0.7%
$ 5,000,000 South Dakota Housing Development Authority,Homeownership Mortgage,7.875%,5/01/13 AA- $ 5,258,0011
Tennessee-2.9%
Tennessee Housing Development Agency,Alternative Minimum'Pax:
9,100,000 7.825%,7/01/15 Al 9,557,457
12,580,000 8.125%,7/01/21 Al 13,196,923
Texas-6.6
10,500,000 Brazos River Authority,Pollution Control (Houston Lighting and I'over Company),
9.875%,8/01/15 A— 11,965,275
Brazos River Authority,Pollution Control('Texas Utilities Electric Company),Alternative
Minimum Tax:
12,110,(100 8,250%,12/01/16 Baa2 12,97:3,443
4,295,000 8.250%, 1/01/19 I3aa2 4,653,246
2,000,000 8.125%,2/01/20 Baal 2,152,640
2,270,0(10 Cameron County Housing Finance Corporation,ONMA Collateralized Mortgage,7.850%,3/01/24 Aaa 2,376,962
Dallas Housing Corporation(Section 8 Assisted Projects):
1,000,000 7.700%,8/01/05 A 1,042,740
2,000,000 7.850%,8/(11/13 A 2,142,120
10,000,000 Harris County Hospital District,7.4011%,2/15/10 Aaa 10,768,400
5,000,000 San Antonio Electric and Gas Systems,7.0(10%,2/01/14 Aa1 5'225,55(1
Utah-2.0%
Intermountain Power Agency:
9,250,000 7.500%,7/01/16 AA 9,651,358
5,480,000 7.500%,7/01/17 AA 5,862,449
Vermont-0.9
6,540,000 Vermont Housing Finance Agency,Alternative Minimum Tax.8.150%,5/01/25 Al 6,947,834
Washington-4.8%
8,160,000 State of Washington General Obligation,9.100%-2/01/98(Pre-refunded to 2/111/95) Aaa 8,998,766
3,1100,000 Washington Health Care Facilities Authority(Franciscan Health System),7.250%,7/01/15 Aaa 3,205,170
Washington Public Power Supply System,Nuclear Project No. 1:
5,145,000 7.000%,7/01/12 AA 5,245,019
13,900,(1(10 7.250%,7/01/15 AA 14,492,279
2,950,000 7.500%,7/01/15 AA 3,112,958
2,000,000 8.000%,7/01/17(Pre-refunded to 7/01/00) AA 2,346,600
Wisconsin-0.4%
3,270,000 Wisconsin Housing and Economic Development Authority,Home Ownership Revenue,
7.600%,3/01/15 AA 3,395,104
$692,880,000 Total Investments-(cost 8701,646,743)-95.1% 745,098,807
s8..,-.z'*s
9
Nuveen Exchange-Traded Funds
Annual Report
October 31,1992
PORTFOLIO OF INVESTMENTS
investment Quality- (Gulltzted.
Principal Market
Amount Description Ratings* Value
Temporary Investments in Short-Term Municipal Securities-1.2%
$ 3,800,000 Forsyth Pollution Control(Pacificorp Co!strip),Variable Rate Demand Bonds,Alternative
Minimum Tax,3.100%,12/01/16t N/R $ 3,800,000
3,200,000 Massachusetts Healthand Educational Facilities Authority(Capital Asset Program),
Variable Rate Demand Bonds,2.700%,1/01/351' VMIC-1 3,200,000
2,700,000 Southwestern Illinois Development Authority(Shell Oil-Wood River Project),Variable Rate
Demand Bonds,Alternative Minimum Tax,3.050%,8/01/21t VMIC-1 2,700,000
S 9,700,000 Total Temporary Investments-1.2% 9,700,000
Other Assets Less Liabilities-3.7% 28,438,511
Net Assets-100% 8783,237,318
Number
Standard&Poor's Moody's of Issues Market Value Percent
-Summaryof Ratings' AAA Aaa 27 $222,049,009 30%
Portfolio of Investments AA+,AA,AA— Aa1,Aa,Aa2,Aa3 22 178,873,493 24
(excluding temporary A+ Al 8 88,555,810 12
investments): A A— A,A2,A3 t3 98,390,043 13
BBB+,BBB,BBB- Baal,Ban,Baal,Baa3 2b 151,543 980 20
Non-rated Non-rated 2 5,580,400 1
Total 97 $745,098,807 1fI0No
Ratings(not covered by the report of independent auditors):
t sing the higher of Standard&Poor's or Moody's rating.
N/R-Investment is not rated.
The security has a maturity of more than one year but has variable rate and demand features which qualify it as a short-term security.The rate
disclosed is that currently in effect.This rate changes periodically based on market conditions or a specified market index.
See accompanying rotes to financial statements.
Ill 9'31249
Nuveen Select Quality Municipal Fund, Inc. (NQS)
Principal Market
Amount Description Ratings* Value
Alabama-0.4%
S 2,900,000 Arab Water Works Board,7 0'50"h,,8/01/10 Anti 8 3,051.773
Arkansas-1.3%
8,090.000 Arkansas Development Finance Authority,Single Family Mortgage 8 01111"",WI 5/11 AA 9.170.4192
California-3.0%
21,800.000 Los Angeles County,Transportation Commission,Sales'Pax.0.7,0' 7101/20 Al 91,748,552
Colorado-4.2%
20,000,000 City and Countyof Denver.Airport System.Alternative 6linintum Tax,8.7.50'5 11'15/2. Baal 22.145,000
7,800,000 Jefferson County,Single Family Mortgage,8.875%.10/01/1a Ann S°'20,0:1(',
Connecticut-1.0%
7,500.000 Connecticut Development Authority(Alzheimer's Resource('enter). Ill000°m,8/15/21 N/It 7,490/00
District of Columbia-1..8%
0,950,000 District of Columbia General Obligation 9.375%.li/1150,(Pre-refunded to 0/01/95) Ana 7.935.927
5,000.000 District of Columbia Housing Finance.-Agenc ,Altelnauw Minimum Tax,S.1011'. 12/0185 \AA 5,251.150
Florida-17%
Jacksonville Electric Authority:
.1,500,000 7.5011"S. 10/01/0° Aar 4971,555
11.250,000 6.7511°/".10/01/21 AuI 11,:380,515
Georgia-.4.9%
Georgia Municipal Electric Authority:
9,000,000 9.750"4%.1/01/01 AA— 10,078,0511
10,000,000 141.750°'. 1/01/20(Pre-refunded to 1/)11/95) Aaa 11,001 ji00
5,110,000 Atlanta Urban Residential Finance Authority.Single Family(CNMA).Alternative Minimum Tax.
8.250044 10/01/21
AAA 5,158.141
7,650,000 Burke County Development Authority.Pollution Control (Georgia Power Company).
12.0011°0,1(1/01/14 Ban l 8,767,005
Hawaii-2.3%
10,000,0(01 Hawaii Department of Budget and Finance(hapiolani Health Care System).7.05154.7,01/19 iA— 10,918.08°
Illinois-2.8%
(3,100,0011 Illinois Development Finance Authority(Marriott Retirement Communities.Inc.-Church Creel,
Project).7.750"'44,8/01/10 AI 3,232,019
Illinois Development Finance Authority,Multi-Family I loosing:
775,000 7050"",.7/01/07 ;AAA 82)4115
0,780,000 7.050w", 12/31/31 AAA 7,177,308
8,400,0110 Illinois Housing Development Authority,Multi-Fancily Ilousing 400"4,7/01291'3 Al 8,820,1148
Indiana-1.8%
5,000,000 Indiana Office Building Commission,8.7501/44 7/01'11(1 ,e-refunded to 7,01/97) Ana 5.921.212
5,5751,000 Beacon Heights Housing Development Corporation,Multi-Family Mortgage, FH.A Insured.
7.0'25°4,2/111/21 AAA 5,055,051
91249 11
Nuveen Exchange-Traded Funds
Annual Report
October 31,1992
PORTFOLIO OF INVESTMENTS
&'/eef Qnrltit,j - continitr'rl.
Principal
Amount Description Market
Indiana-(Continued) Ratings` Value
3 1,18((,010 Michigan City Housing Development Corporation,Multi-Family Mortgage.FHA Insured,
7.625%,•2/01/21
AAA 8 1,198,019
Kansas-2.9%
.Merriam (Shawnee Mission Medical Center):
11,895,05) 7.250%.9/01(04
8,8110,11110 7.250%,9/111/21 -A- 12,0.84443
A— 8.937,102
Kentucky-0.4%
3,015,0110 Lakeland Wesley Village Mortgage,7.5(19%, 11/01/21
An 3,061,220
Louisiana-0.4%
3.(100,000 Calcasieu Parish Public Trust Authority,7.7511%,6/01/12
A :3,049,080
Massachusetts-7.3%
111,0110.01111 Commonwealth of Massachusetts General Obligation,7.800%,(/01/(19(Pre-refunded to 6/01/913)
°001101111 Massachusetts Health and Educational Facilities Authority (Lowell General Hospital), A 1.0,455,900
8.100%.(E01/11
1(1,4:5,000 Massachusetts Housing Finance Agrney(GNMA),9.(100%, 12/01/(19 Baal 1.6116,!14(1
Massachusetts Housing Finance,Agency.Residential Housing, Aaa 11,606,016
2,000,000 u,� Alternative Minimum Tax:
8achus Massachusetts
(1
42'0,0(111 8.1011%,8/01/21 A+ °,101,000
5,120,000 8.200'9u,8/01/27 A+ 4,408,465
11,325,00(1 Massachusetts Water Resources Authority,11111111 ,,A;111/211 A+ -5.369,395
6,300,(100 Somerville Housing Authority.Mortgage Revenue(INM,A(Clarendon Hills Towers), A— 10.326,815
7,95(("5, 11/20/30
AAA 6,568,884
Michigan-1.2%
7,890,0(10 Michigan Slate Hospital Finance Authority(Detroit Medical Center),7.60036,S/IS/I I
A— 8,427,2:30
Minnesota-1.2%
2,500,11011 Eden Prairie Multi-Family Housing(tanager Creek Project),690114'0,5/111/21
(Mandatory put.5/01/98)
5,0(1(1(IOII Western Minnesota Municipal Power'Agency, Aa2 5.570,01)0
I k- y,9.500%. 1,'(11113(Pre-refunded to 1/01/913)
Aaa 5,80;.,000
Mississippi-0.2%
1,495,11011 Goodman Housing Development Corporation,Multi-Family Mortgage,7.(325%.2/01/°°
AAA 1,533,511
Nebraska-1.3%
111,170.1100 Omaha Public Power District,5.9011%,2/111/113
AA 9,481,389
Nevada-0.2%
1,50(1,(100 Nevada Housing Divis)on,'(lull i-lrnil Housing 8.500%,4/1)1/9(i
AAA 1,583,950
New Jersey-0.6%
1,420,000 New,lersep Housing and Mortgage Finance,Agency,6.850%. 11/01/(16
AA+ .4,590,530
.51'1 (/('compute//i17r aolrx to than(inl sliderrr(I/s.
9431249
Principal Market
Amount Description Ratings* Value
New Mexico-1.8%
S 2,880,000 New Mexico Mortgage Finance Authority.Single Family Mortgage..Alternative Minimum'Pax.
7.500%,3/01/21 A+ S 2.953 207
10,000,0011 Farmington Pollution Control (Southern California.Edison Company).7.200%,4/01/21 A;A 10,329200
New York-7.5%
0,000,0011 New York Local Government Assistance Corporation,7.000%, 1/01/18 A 0,129,2411
1,750,000 New York Slate Medical Care Facilities Finance Agency(Hospital and Nursing Home).
8.0011%,2/15/28 A 1005,113
New York State Medical('are Facilities Finance Agency(Mental Health Services Facilities):
2,050,000 7.0)10%,2/15/00 Baal 2,150,339
2,010,000 7.0001%,8.115/00 Baal ?,137,790
10,000,000 7025"/x,8/15/17 Baal 10,303 9011
6,040.000 7.400"/0,2/15/18 Ban 0,837,073
3,41(1,1100 New York State Mortgage Agency,Alternative Minim II m Tax.8.000%. 111/01/11" Aa 3,492,093
0,000,000 NOW York Slate Crhan Development Corporation(Correctional Capital Facilities),7.500%, 1/01/18 Baal 029.1,840
New York City General Obligation:
5,000.000 8.250%. 11/16/10 A- 5.57:,2511
0211,001) 8.25)1%, I I/15/IS A- 093,575
7,130,000 8.2511'+. 11/15/15(Pre-refunded to 11/15/01) A- 8,181,503
North Carolina-1.9
North Carolina Municipal Power.Agency No. I (Catawba):
3,395,000 9.1100%n, 1/01/14 (Pre-refunded to 1/01/90) Ana 3,890,304
8,750,000 9.025%.1/01/19(Pre-reloaded to 1/01/90) Aaa 10.2)12 088
Ohio-1.0%
Toledo-Lucas County Port Authority..Alternative Minimum Tax:
9911,(11111 8.500'/0,5/I 5/00 N/R 992,1)99
4,935.000 5.5000k, 11/15/00 N/It 4 9111,104
1,500.000 8.400%. 11/15/01) N/It 1.572,18(1
Oklahoma-8.3%
38,500,0110 Oklahoma County Home Finance Authority.Single Family Mortgage 8.750%),7/III/I" A 40,115,190
21,025,000 Tulsa Municipal Airport(AMR Corporation), Alternative Minimum Tax.7.000'%i,1'2/01/30 Baal 21.101.032
Pennsylvania-2.4%
3,000.000 Pennsylvania Higher Education_Assistance Agency.Student Loan.Alternative Minimum Tax
7.150%,9/01/21 Aaa 3,141210
Ph iladelpl is Water and Sewer:
4,000,000 8.800%. 10/01/99 BBB 44.399,0)10
10,00(100(1 7.000's.8/01/18 BBB 9,852,900
Rhode Island-4.4%
6,650,000 Rhode Island Depositors Economic Protection Corporation.7.250%,8/01/'21 Aaa 0,981,237
Rhode Island Housing and Mortgage Finance Corporation,Alternative Minimum'Pax:
4,005,0(10 8 200'S.10/01/17 AA+ 4,813,309
19,0110,0110 8.250%. 10/0100 AA+ 20,122,1411
ft 912'(9 13
Nuveen Exchange-Traded Funds
Annual Report
October 31,1992
PORTFOLIO OF INVES-TMENTS
.S'elcel Qtu//it/1- Cut/inttrvl,
Principal Market
Amount Description Ratings* Value
South Carolina-3.0%
Piedmont Municipal Power Agency:
5,000,000 9.62541. 1!111/I3('re-refunded to 1/111/9(i) Aaa $ 5,864,050
13,590,11110 0.70061. 1/01/24(Pre-refunded to (/01/90) Aaa 15,908,250
South Dakota-1.7%
11,645,000 Dakota Dunes Community Improcement District,7.875%.8/01/16 Aaa 12,301,545
Tennessee-0.9%
5,085,000 Tennessee Housing Development Agency.Homeownership Program,Alternative Minimum Tax,
74150'17%,7/111."' Al (1,212,310
Texas-9.6%
11,105,0)11) Austin Water.Sewer and Electric, 14.250"'u, 11/15/00(I're-rounded to 5115/07) Aaa 12,840,270
Brazos River Authority.Pollution Control (Texas Utilities Electric-Company),
Alternative Minimum Tax:
0;180,000 8.250°„., 1/01/10 13aaL' 7.02)1,407
8,580,01(0 8.1256/ 2/0120
Boa? 9,234,826
3.500,000 Corral(''coal/Health Facilities Development Corporation(McKenna Memorial I lospital),
74375114. 1/15/21 Ar\eA :3,551,450
20,0.50,000 El P 1 oflousing Pinanec Corporal ion.Single Family Mortgage,8_7506/4 10/0411 A ?1,485,081
0.000,000 Harris County Toll 1mrd-C!dimity('Tax and Subordinated Lien,0425064 8/01/1-1
(Pre-refunded to 2/01/95) ,A 7
AA 07.10,71(1
-1,111(1,1100 I larrisen County Dousing finance Corporation,Single Family,8.875''..- 12/(11/11 A 1,519,851
2,305.000 Panhandle Regional Housing Finance Corporal ion,Single Family GNMA Mortgage
Alternative Minimum Tax x0114.5/0121 AAA 2,405,304
26000110 Sabine River Authority.Pollution Control(Texas Utilities Electric Compmrv),7.7500,../01/10 Baal 2,007.202
Utah-5.8%
Intermountain Power.Agee/:
1:%,050,(11111 9/20044,7/01/85(Pre-refunded to 7/01%95) Aaa 14,833,805
5,150,000 10.375 n',,7/(11/11%
AA 6,9.93,?118
4,4001101) 7.500'S.7/Ill 710 AA 4,590,910
11%,145,0011 7.200%.7411/10 .A.A. 16,710,076
Virginia-1.7%
12 0011,100 Chesterfield('ount> Industrial Uecelapment.Authority(13randernlill Woods Project),
10.02560.7/111;111 N/ft 12,031 020
Washington-5.2%
Washington Public Pewit Supply System,Nuclear Project No. 1:
1,0011,0011 T400'6„,7/01/119 AA 4,180.520
1,000,000 8.011(1'!1,7/01/17(Pre-refunded to 7/01c00) AA 1,173,300
Washington Public Power Supply System,:Nuclear Project No.2:
2.00011110 7.37546.7/01/1''
AA 2.114,699
.1000,000 7.0011°6,7/(11/1° AA 5,097,109
24,000,11110 Washington Public Power Supply System.Nuclear Project No.3,72504/4.7/01/15 AA 25,085,100
S'((7 '(nrupnrpiuf/rill/CS/0(iunru'iul e'l rrlrrrrrtr l.a.
11 9:102-19
Principal Market
Amount Description Ratings* Value
Wisconsin-0.5%
S 3,375,000 Wisconsin Housing and Economic Development Authority,Alternative Minimum Tax,
8.250%,9/01/20 AA $ 3,601 66✓)
$668,480,000 Total Investments-(cost$682,405,542)-97.6% - - - - 710,081,244
Temporay Investments in Short-Term Municipal Securities-0.6%
Si 4,000,000 New England Education Loan Marketing Corporation,Alternative Minimum'I'a,x,Variable Rate
Demand Bond.3.250%,9/01/131- VMIG-1 4,000,0011
500,000 New York City General Obligation Bond,Variable Rate Trust Certificate 20A,-2.687%,8/15/98t N/R 500,000
S 4,500,000 Total Temporary Investments-11.6% 4,500,000
Other Assets Less Liabilities- 1.8°1° 13,292,957
Net Assets 100% --- $727,874,201
Number
Standard&Poor's Moody's of Issues Market Value Percent
Summary of Ratings* AAA Aaa 27 $175,932,362 25%
Portfolio of Investments AA+,AA,AA— Aal,Aa,Aa2,Aa3 22 177,952,520 25
(excludingtemporary A+ Al 8 54,852,586 8
investments): A,A— A,A2,A3 15 158,933,803 22
BB13+, BBB,RBIs— Baal.Baa,Baal,13aa3 14 1.15,376,670 16
Non-rated Non-rated 5 27,033,3(13 4
Total 91 $710,081,244 1011%
`Ratings(not covered by the report of independent auditors):
Using the higher of Standard&Poor's or Moody's rating.
N/R-Investment is not rated.
t The security has a maturity of more than one year but has variable rate-and demand features which qualify it as a short-term security.The rate
disclosed is that currently in effect.This rate changes periodically based on market conditions or a specified market index.
s�1 249 1:;
Nuueen Exchange-Traded Funds
Annual Report
October 31,1992
PORTFOLIO OF INVESTMENTS
Nuveen Quality Income Municipal Fund, Inc. (NQU)
Principal Market
Amount Description Ratings* Value
Alabama-0.6%
$ 7,000,000 Alabama Municipal Electric:Authority,(1.500%,9/01/05 Aaa $ 7,130,200
Alaska-1.7%
4,045,000 Alaska Housing Finance Corporation (Veterans Mortgage Program),7.125°/o, 12/01/30 Aaa 5,014,823
-8,150,000 Alaska Housing Finance Corporation,Collateralized Home Mortgage,7.300%,6/01/25 Aaa 8,376,978
6,750,000 Alaska State Housing Finance Corporation,6.600%,12/01/23 Aa 6,518,475
Arizona-1.0%
5,510,000 Maricopa County Industrial Development Authority,Single Family Mortgage,7.500%,8/01/12 Aa 5,574,632
6,000,000 Yuma Regional Medical Center,8.000%,8/01/17 13130 6,298,740
Arkansas-1.7%
7,840,000 Arkansas Development Finance Authority,Single Family Mortgage,8.000%,8/15/11 AA 8,273,944
9,4011,000 l'ope County Pollution Control(Arkansas Power&Light Company),11.000%, 12/01/15 Baal 11,080,720
California-7.9%
1(1,000,000 California General Obligation,6.200%,9/01/05 Aa 9,921,800
10,000,000 California Housing Finance Agency,Home Mortgage,7.1150'%,,8/01/27 Aa to,108,300
111,11110,000 California Public Works Board,Department of Corrections,6.500%,9/01/19 Al 9,610,80(1
3,56(1,1100 California Public Works Board(California State University),6.625'%,, 10/01/10 Al 3,446,450
6 30,000 Bell Community Redevelopment Agency,(1.7110°%n,9/01/98 A+ 6,445.750
15,000,000 Brea Public Financing Authority,'Pax Allocation Revenue,7.000%,8/01/15 Aaa 15,507,300
9,504(101) Clovis Hospital Revenue(Clovis Community Hospital),8.750%,2/01/15 ;Aaa 10,548,135
4,500,000 Lancaster Redevelopment Agency(Project No.5),0.500%, 111/01/97 A+ 4,574,610
0,000,000 Lancaster Redevelopment Agency(Project No.6),6.450%, 10/01/97 A+ 6,032,760
4,000,000 Lancaster Redevelopment Agency(Amargosa Project),6.5110S,, 10/01/97 A+ 4,066,320
2,500,000 Northern California Power Agency,7.150°/0,,7/01/24 A 2,561,225
2,000,000 Redwood City Public Finance Authority,7.250%,7/15/11 A— 2,030,880
7.050,000 Southern California Home Financing Authority,Single Family Mortgage(GNMA&FNMA
Mortgage-Backed),Alternative Minimum Tax,7.3501%,,9/01/24 AAA 7,238,729
Colorado-4.7%
3,1100,000 Broomfield Sales and Use Tax,0.300''S,. 12/01/14 Aaa 2,919,570
City and County of Denver Airport System.Alternative Minimum Tax:
9,160,(100 8.500%, 11/15/93 Baal 9,906,082
12,860,000 8.750%, 11/15/'3 Baal 14,239.235
4,140,000 8.000'S, 11/15/95 Baal 4,320,711
17,350,000 8.000%, 11/15/25 Baal 18,160,766
5,110,000 Pueblo County(Parkview Episcopal Medical Center),8.300%,9/01/11 Baal 5,255,839
District of Columbia-0.6%
7,215,000 District of Columbia University(Howard University),6.750%, 10/01/12 AA— 7,(159,950
Florida-4.7"/
5,250,000 Dade County Industrial Development Authority.Solid Waste(Florida Power and Light
Company),7.150%.2/01/9'3 A2 5,393,745
See tamom/>nnl/i e)no/es to tinantill statements.
16 9a12 *9
Principal Market
Amount Description Ratings* Value
Florida-(Continued)
$ 4,000,000 Jacksonville Electric Authority, 10.25d8. 10/01/20(Pre-refunded to 10/1(1/95) Aaa $ 4,720,440
12,501),000 Orange County Health Facility Authority(RHA/I'rineeton I lospital),9.000%,7/1)1/21 N/R 12,850,625
14,400,000 Palm Beach County Health Facilities Authority(JEIC Medical Center).8.875"/0. 12/01/18 BBB— 15,506,496
8,485,000 St.Lucie County,Solid Waste Disposal (Florida Prover&Light(''ompany),7,1.50%,'/01/23 A2 8,704,677
'Pampa Capital Improvement Program:
1,605,000 8.000''/0 10/01/02 AA 1,666,365
5,830,000 8.250%, 10/01/18 AA 5,899,669
Georgia-3.7%
Clayton County Hospital Authority(Southern Regional Medical('enter):
2,900,000 6.500%,8/01/10 Aaa 2,898,463
4,500,000 7.000%,8/01/13 Aaa 4,673,250
15 900,000 Fulton-Delalb Hospital Authority,(3.91111"/3, 1/01/20 Aaa 16,243,440
9,000,000 Municipal Electric Authority of Georgia,8.125'S, 1/01/17 AA— 10,063,530
9,230.000 Putnam County Pollution Control(Georgia Power Company),7.250%.7/01/21 Aaa 9,689,008
Illinois-7.3%
6,000,000 Illinois Development Finance Authority.Pollution Control(Commonwealth Edison Company),
11.375°/0, 10/15/14 Baal 6,733,2(10
7,00(1,001) Illinois Development Finance Authority,Multi-Eamily Housing(Town-and Carden Apartments
Project),7.8000/3,3/01/06 BI313+ 7,224,700
14,500,000 Illinois Health Facilities Authority(Northwestern Memorial Hospital).6.750%,8/15/I1 AA 14,340,645
3,000,000 Illinois Health Facilities Authority(Sherman IIospit al),6.750%.8/01/21 Aaa 3,010.050
5,265,000 Illinois Health Facilities:Authority(Rockford Memorial Ilospit al).6.000'S,,8/15/21 Aaa 4,823,635
4,000.000 Illinois Housing Development Authority,Section 8(Garden House of\la)wood),7.00O%,9/01/18 A 3,989,920
Central Lake County.Joint Action Water Agency:
6,000,000 7.000%,5/01/19 Aaa 6,200,880
10,000,000 7,000%,5/01/20 Aaa 10,326,800
3,800,000 Chicago O'Hare International Airport.9.5000%. 1/01/03 Al 4,107,523
24,430.000 Cook County General Obligation.(1.7508,, 11/01/18 Aaa 24,590,749
Indiana-1.5%
5,905,000 Indiana Health Facilities Financing Authority(Conunni(y Hospitals of Indiana),7.000%.7/01/1 L Aaa 6,099,334
9,50(1,000 Indiana Office Building Commission.8.750%.7/01/12(Pre-refunded to 7/01/97) Aaa 11,116,900
Iowa-0.4%
4,500,000 Polk County Insured Health Facilities Revenue(Mercy Health Center of Central Iowa),
(3,750%, 11/01/15 Aaa 4,543,470
Kansas-2.1%
3,670,000 Labe0e County and Cowie> County.Single Family Mortgage,9.500%0.-(/01/13 A 3,932,625
Merriam(Shawnee Mission Medical Center):
7,380,000 7,250%,9/01/II A— 7,495,054
10,000,000 7.250%,9/01/21 A— 10,155,900
2,455,000 Saline County Single Family Mortgage,9.500%, 111/01/1 I A 2,640,205
9al2 i9
17
Nuveen Exchange-Traded Funds
Annual Report
October 31,1992
PORTFOLIO OF INVESTMENTS
Quality Income-continued.
Principal
Amount Description Market
Ratings* Value
Kentucky-2.5%
S 3,000,000 Kentucky Development Finance Authority(St.Claire Medical Center),7.125%,9/01/21
$
10,000,000 Danville Multi City Lease(Louisville-and Jefferson County Metropolitan Sewer),6.800%,3/01/19 Aaa 10,224,000
2100
`Aaa 3,143,220
3,000,000 Greater Kentucky Housing Assistance Corporation (FHA Insured),7.625%, 1/01/25
9,100,000 Jefferson County Multi-Family Housing(Cantor Chase Project),6.750%,11/01/21 (Mandatory
put 10/01/98) -
Al 9„360,5:59
2,980,000 Kenton County Airport Board(Greater Cincinnati International Airport),Alternative Minimum
Tax,8.250%,3/01/15
A 3,290,427
Maryland-2.6%
Maryland Community Development Administration,Department of Housing and Community
Development,Alternative Minimum Tax:
15,000,000 7.450%,4/01/20
4,320,000 7.4511%,4/01/32 Aa 15,544,800
Aa 4,486,579
10,000,0110 Maryland Community Development Administration,Multi-Family Housing,7.1011%,5/15/28 Aa Aa 10,Lfi0,000
Massachusetts-3.9%
Massachusetts Hay Transportation Authority:
111,000,0911 7.000%,3/01/11
19,600,000 7.000%,3/01/771 A 10,292,300
A 2(1,025,908
15,000,000 Massachusetts Industrial Finance Agency,Resource Recovery(Semass Project),9.000%,7/01/15 N/12 15,680,850
Michigan-2.8%
5,000,000 Michigan State Hospital Finance Authority(Detroit Medical Center),7.5011%,8/15/11
A- 5,340,450
15,875,000 Michigan Strategic Fund('['he Detroit-Edison Company),6.875%, 12/01/21 Aaa
16,306,800
Grand Rapids Water Supply System:
4,500,ll(10 6.6258, 1/(11/08
7,000,(100 6250%, 1/01/11 Aaa 4,586,625
Aaa 6.825,980
Minnesota-0.,A%
2,410,0(10 Dakota and Washington Comities Ilousing and Redevelopment Authority and Bloomington Single
Family Residential Mortgage(( NMA)-Alternative Mittimmn Tax,8.375%,9/01/21 AAA 2,589,256
2,500,000 Washington County Housing and Redevelopment Authority,Multi-Family Housing,Alternative
Minimum Tax,7.650%,8/01/3'9
AAA 2,577,125
Mississippi-0.6%
0525,000 Canton Housing Development Corporation(Canton Estates),Multi-Family Mortgage,
7.750%,8/01/24 AAA 4,200,320
1300,000 Charter Mortgage Corporation(Church Garden Project),Multi-Family Mortgage.7.750%,8/01/'21 _ AAA 1,493,154
1,420,000 Pearl Housing Development Corporation(Rose Garden Project),Multi-Family Mortgage,
7.7501%,8/01/22
AAA 1,455,766
Missouri-1.8%
Missouri Health and Educational Facilities Authority(Heartland Health Systems):
:3,070,000 7.625%, 10/01/(III HBH+
6,500,0(10 5.125%, 10/01/10 :3,112,366
BBB+ 6,889,220
Jackson County Industrial Development Authority(Saint Joseph Health Center):
5,730,000 6.500'%,,7/01/1'9
5,6f15,000 7.000%,7/0l/'°`� Baal 5271,4
Baal 5,365,947
7
See accompanying notes to financial stalenivltls-
18 9129
Principal Market
Amount Description Ratings* Value
Montana-0.6%
$ 7,000,000 Forsyth Pollution Control(Puget Sound Power&Light('ompnny),7.(1511'5,.NO I/21 Ant' $ 7.2711,3:31)
Nebraska-0.2%
2,275,000 Omaha Airport Authority.S,375'h,, 1/01/II .V 2.615,.575
Nevada-0.8%
10,000,000 Clark County(McCarron International Airport),Ii. ((('H.7/111/" Aaa 0,219,400
New Hampshire-017%
3275,000 New Hampshire Housing FinanceAuthorit>,Single Family.Alternative 1liuinmm'lax,
5.5006 1,7/01/14 An 3,5?1,031
1,900,000 New I lampshire Housing Finance Authority.Single Family Residential Mortgage,7.100'46, II01/23_ Au -1.923,609
New Jersey-0.9%
10,5011,000 Camden County Pollution Control Villainy Authority(Solid Waste Disposal and Resource
Recovery System),7.2511''-), 12,01/111 Baal 111,51/0,390
New York-0.7%
Dormitory Authority of the Stale of New Sock(Slate l rniker-sitV I:
1 3,0(10,(lllll 7110060,5/15101 Baal 1,1,08:1,6 10
11,730,000 7700'16,5115/1° Batt 12,591,590
2,1100(100 Dormitory Authority of the Slate of New York(City l'niversity System).S.7004n_?01/03 Haul 2,372,70(1
$366,0011 DormitoryAutlwrity of the Suite of New York(Menorah Campus) 7.ltt0 ,,.?/III/31 AA 9021),395
21.075,01111 New York Local Government Assistance Corporation,7511111,. 1/91/211 A 22,I62.157
2,210,1100 N I 'lousing and Commercial Rehabilital ion Corporal ion_FHA Insured Mortgage.Section
Assisted Project.7.:3511'4),SN1/223 A,A 2,123.574
New lurk City General Obligation:
2,000,000 5'.1100"/0,l3/01/90 A- 2.157 960
8;11(1,000 6.8004),2/(11/97 :A- H.71(i,49I
5,01111,000 li.l 11111'61, ,5/01/1111 A— 4.567,31111
3,555,11011 Penfield-Crown CAM Ilousing Developurent Corporation (Crow ii-Oak L'sLues)_ 1 At ,5/111/i AA.A 1/,611.550
Ohio-0.6%
1,000,000 Akron-Bath-Copley Joint Township Hospital (Akron General.Medical linter),
(i.5011t'A,, 1/111/I9 Aaa 998,5511
411110,000 Butler County Hospital Facilities Revenue(Fort Ilamiltou-IRight's.Memorial hospital).
7.500'),1:0 I;'I ll Baal 4.11(/:3.9 IS
1.500,000 Franklin County(The('hiltlrcn's hospital).6.6011'F,. I I/01/I I :An I,166.5 (1
Oklahoma-7.1%
35,005.000 Oklahoma County Home Finance Authority.Single Family Mortgage.5.75t('H.701/I'' A 10,630.1(54
17,310,000 fort watomie('aunty Homy Financ+'Authority,Single Family llorrgag .101_.5' 7'01/lu Aaa 21,615,920
8,740.100 Rogers County Housing Finance Authority.Single l'mail y Mortgage.S.850' ,.2/Ill/II Ana 11.002,1111
10,1001100 Tulsa Municipal Airport(AMR C'orporalion)..Mternaliyc Minimum Tax,7.600"',, 122/111/30 Baal 10.16.-,,117
Pennsylvania-0.3%
I'hiludelphia Water and Sewer System[
2,000,1110 [/.9110'5, 4'01/1(5 BBB 2.005,610
2,0011,000 7(1110'4). 1/01199 Wilt 2 011,000
92' 249 19
rvuueen Exchange-1 reded Funds
Annual Report
October 31,1992
POItr[ FOI. io of INV ['; STME1NTS
4)uulil///nConu'- continued.
Principal
Amount Description Market
Rhode island-0.5% Ratings' Value
S 5,260,000 Rhode Island Housing and Mortgage Finance Corporation,8.250%, 10/01/OA
Al $ 5,510,534
South Carolina-1.1%
7,000,1100 Lexington County Health Service District,11.750%,.1(1/01/18
Piedmont bluiriei sal Pow gcncy:
er A Aaa 7,110,320
2,875,000 9.700111t 1/01/21 (Pre-refunded to 1/01/96)
2,000,000 7.000%, 1/01/25 Amt 3,378,125,
A 2,018,120
South Dakota-1.0%
11,(;35,0(10 Dakota Dunes Community Improvement District,Special Assessment,7;475'1,,8/01/1(i
Aa3 12,290,981
Tennessee-0.9%
10.300.000 Aletropolitalt Nashville Airport Authority.6.625%,7/01/07
Ana. 10,560,178
Texas-7.9%
11.655.0110 Texas Housing Agency Residential Mortgage.Alternative.Minimum lax 8.100"4,. 1/OIP2I Aa. 12,417,7003
2,011,11(10 Austin Combined l allay System, 1(1.200°; 11/15/12 U're-refunded to Il1 ,'9,5) r
5,0001,000 Beaumont Housing Finance Corporation Single Family Mortgage.9 °00'1.3/01/1'° Aaa 5,424,600
5,1)00,000 Brazos River Authority(Houston Lighting&Power Project),7.750'',,,, 10/01/15A 5.424,600
5,000,00(1 Dallas-Dort Worth International Airport (Americon Airlines.Inc.),Alternative Minimum Tax, /A 5.416,850
7.500%. 11,101/95
21,000,000 fnr0 WorthHlusln Baal 1,960,700
0
Housing finance Corporation Home Mortgage 8.1OO"/0.1O/OW1 :A 2°1;588,650
1.'145,0011 Galveston Property Finance Authority,Single Family VInuga„e,8.500S,.9/01/1 I
7.71,51100 Houston.Airport System,6.6_,x,7/01"," A 5,241,749
0.18
6
15,500,000 I taunter N'aler and Sewer Syeteur..lu nine Lien,11,375'x,, I'?/111/17 Aaa 7,700,186
5.135,1100 Lower Colorado Ricer Authority,9 500'/0, 1/01/13(Pre-refunded t0 1/01/96) Aaa 17,191,268
I.7111100(1 San Antonio Independent School District,5.01101^4,, 11/01/04(Pre-refunded to 11/01/951 Aaa 1 1 11,403
Aaa 1,874,403
Utah-2.3%
15.0010,000 Utah School District Finance Cooperative.8.;r:-.N. '/1.5/10(Pre-refunded to 8/15/)18)
9,050,1100 Intermountain Power Agency,9.000'8,7/01/19 Ana 17,361,600
AA 10,134,462
Vermont-0.7%
8,000,000 Vermont Housing finance.Agent.v,single Family,7.3008,5/01/25
Al $091,4fi(I
Virginia-2.7%
7,750,000 Virginia Housing Development Authority,7.150^4,, 1/01/33
12.0(01.000 Chesterfield County Industrial Development Authority(Hr ndernlill Wounds Project). An 7,967,853
10,625",,,,7/01/16
11,860,000 Roanoke Industrial Development Authority(Roanoke Memorial Hospitals),6.5011'S,,7/01/2'5, n it 12,731320
Aaa
Aaa 11,717,:fHi
Washington-7.8%
:$5(10,0110 Washington Health('are Facilities Authority(Yakima Valley Memorial Hospital).7250'S,, 1/01/21, A— 3,592,435
10,000,00(1 Washington Public Power Supply System,Nuclear Project No. 1,6.5010'4,,7/01/17
111,150.000 Washington Public Power Supply System,Nnelear Project No.2.7.000%,7/(11/12 All 0,347,316
1 d,501L000 Washington Public Power Supply Syrian, Nuclear Project No.:1.7.40081i,7/01/IY,1 AA 15 355,160
)i,000,)100 Douglas / AA 10392,140
gat County, l'Iilip Dist Nu. l (AA'clls Hydroelectric Project),R7S(I;i,,9,(11/18 A+ 7,392,840
12,415,000 Kink C aunty School District #'10 federal Way General Obligation,Ii 9,00/, 12111/11 A 12,552,8117
2,59)5.000 Pierce County School District No.320 General Obligation,6.000'8. 12/01/1)6
A 2.651;322
.1'ry(teeo,/90////iny//0/us 10(/0(0'01ot sn/c the n Is.
20 91249
Principal Market
Amount Description Ratings" Value
Washington-(Continued)
Municipality of Metropolitan Seattle.Limited Sales Tax General Obligation:
$ 10,310,000 6.875°8,, 1/01/20 Aa $ 10,346,291
9,810,000 6.625%, 1/01/11 Aa 9,769,092
1,500,000 Skagit County Public Hospital District No.1 (Skagit Valley Hospital and Health Center),
7.250%, 12/01/05 Baa, 1,504,335
7,000,000 North Thurston School District No.3 General Obligation,6.500%, 12/01/09 A 6,905,290
Wisconsin-1.5%
10,820,000 Wisconsin Health and Educational-Facilities Authority(Novas Health Group),13.750%%u,12/15/20 Aaa 10,856,680
7,000,000 Wisconsin Housing and Economic Development Authority,6.850°%n, 11/01/12 Al 6,899,409
Wyoming-0.7%
Wyoming Community Development Authority,Single Family:
4,500,000 7.250'%,,6/01/21 AA 4,602,644
3,200,000 7.400%.6/01/31 AA 3.293,471
$1,098.620,000 Total Investments-(cost$1,11-1,335,(45) 97.8% 1145,310,294
Temporary Investments in Short-Term Municipal Securities-0.2%
S 2.601.1,000 Newyork State Job Development Authority,Alternative Minimum Tax,Variable Rate Demand
Bonds,3.250'%,,3/01/05t VMIG-1 2,600,000
Other Assets Less Liabilities 2.0% 22.841,857
Net Assets-1008, $1,170,752,151
Number
Standard&Poor's Moody's of Issues Market Value Percent
Summary of Ratings* AAA Aaa 47 S 370,547,342 32°/s
Portfolio of Investments AA+.AA,AA- Aa1,Aa,Aa2,Aa3 29 237,161,264 21
(excludingtemporary A+ At 12 75,544,895 7
investments): A A- A,A2,A3 29 236,696,299 20
131313+,BBB,131313- Baal,Haa,Baal,Baa3 24 184,797,099 16
Non-rated Non-rated 3 40,563,395 4
Total 144 81,145,31(1,294 100%
Ratings(not covered by the report of independent auditors):
Using the higher of Standard&Poor's or Moody's rating.
N/R-Investment is not rated.
t The security has a maturity of more than one year but has variable rate and demand features-which qualify it as a short-term security.The rate
disclosed is that currently in effect.This rate changes periodically based on market conditions or a specified market index.
9,-1249 21
Nuveen Exchange-Traded Funds
Annual Report
October 31,1992
PORTFOLIO OF INVESTMENTS
Nuveen Premier Municipal Income Fund, Inc. (NPF)
Principal Market
Amount Description Ratings* Value
Alaska-1.0%
S :1,705(100 Anchorage Home Mortgage.11.11110"/u,3/01/09 AA.A S 3,950,120
Arizona-5.0%
6,500,000 Arizona Educational loan Marketing Corporation.0.950%,3/01/01 A 5,0813,010
1,035,000 Marieopa County Industrial Development Authority.Single Family Mortgage,9.025%,8/01/0" A 1,780.826
12.835,1(011 Yuma Regional Medical Center,8.00(1%,8/01/17 BBB 13,474.055
Arkansas-0.3%
1,310,000 Greene County Residential Housing Board,7.250%, 1/01/10 A 1,295,1395
California-0.8%
3,590,000 California Public Works Board(California State University),13.625'89.10/01/10 Al 3,446,450
Colorado-7.1%
Colorado I lealth Facilities Authority(National Jewish Center):
1,250,000 6.875'S,,2/15/19 131313- 1,200,251)
3,0000(111 7.100'%0,2/15/99 BBB- 2.901,030
City and County of Denver Airport System,:Alternative Minimum'lax:
5,820,000 7.750%, 11/15/21 Baal 5,999,890
5,700000 7.230'9,, I I/1.-/"_:3 Baal 5.030,193
3,535,000 8.000Wn, 11/15/25 Boat 3,700,191
1,400000 Mountain Village Metropolitan District General Obligation,8.100%. 1'2/01/11 N/R 1,120371
8,41000(1 Platte River Power Authority.5,900,1/i,(3/(11/12 Al 7.747,208
1,000,000 Vail Single Family Mortgage.8125"8,,(3/01/111 ;A 1,059,750
District of Columbia-1.6%
2,00(1,000 Diso-iel or Columbia.(Washington lospital('enter).7.1100%,8/15/05 Baal 1,987,380
District of('.olnnthia Ilousing Finance Agency.El IA-Insured Section 8:
920,111111 7200%.9/01/14 Aa 935,566
3,505,000 7.250,1/44:3/01/24 Aa 3,578,219
Illinois-16.0%
Illinois Development Finance Authority.Multi-Family Housing:
1300,000 7.650'S,,7/01/07 ;AAA (335.100
5,270,000 7.(350%, 12/31/31 !AAA 5.588,519
9.4(34000 Illinois Development Finance Authority,Multi-Family Housing('town and Garden Apartments
Project).7.5011°G,,8/01/013 131313+ 9.703,000
1,200,000 Illinois Ilealth Facilities Authority. (Edward Hospital Association).7.000%,2_/15/22 A 1,210.5:30
80511(111 Illinois Health'Facilities Authority(I':3ang'elical Hospitals)-(3.750'%0,4/15/12 AA— 857,189
(1,780,000 Illinois Housing Development Authority.Section S (Garden House of Maywood),7.000"o,9/01/18 A (3,7132,911
Illinois Sales'Pax:
3.1135,100) 0.800,H.(3/IS/09 ;AAA 3,238.080
1,450,000 (3.500'S,,(3/13/10 AAA 1,539,045
(3.31111,000 9.80(15'40/15/12 AAA (3.488.550
4,01(0.000 13lyaol Pollution Control(Lemra.l Illinois light),(3.50(l"h,.2/0 El Aa2 3,831.700
4,504000 Chicago General Obligation(Central Public Library Project).6.850'49, 1/01/17 Aaa 4,003,230
9rv-nreolnpnnpi ur/MIR'S to l'i/u,uriul 41111111CW.S.
9:24ti49
Principal Market
Amount Description Ratings* Value
Illinois-(Continued)
$ 6,755,000 Chicago Board of Education.Lease Participation Certificates,7.500°/s 2/01/90 N/R $ 6,886,317
7,000,000 Chicago O'lhire International Airport,8.750°/1, 1/01/16 At 7,439,950
2,000,000 Onterie Center Housing Finance Corporation,Mortgage Revenue(El IA Insured),7.050%,7/01/27.,, Aaa 2,026,180
2,835,000 Sugar Grove Village Waterworks and Sewerage System,7.500%.5/01/17 N/It 2,769,823
Indiana-2.5%
3,275,000 Indiana Housing Finance Authority,Single Family Mortgage Program Bonds, 10200%,1/01/16 Aa 3,433,183
2,000,000 Indianapolis Exempt Facility(Mid-America Energy Resources,Inc.),7250%, 12/01/11 AA— 2,006,100
3.000.000 Allen County Participation Certificates,13.500°'/0, 11/01/17 Aa 2,907,690
2,170,000 Mill Creek Community School 13u acting Corporation,6.125%. 1/01/I5 A 2,014,932
Kansas-1.3%
4,000,0110 Hutchinson Single Family Mortgage,8.87507,. 12/01/1° A 4,297,000
4,300,000 Johnson County Residual,0.000%,5/01/1° A 1,034,404
Kentucky-4.4%
5.000M00 Kentucky Rural Economic Development Authority(Donnelly Corporation),Alternative Minimum
Tax,8,125%,7/01/1° N/R 4,919,05(1
12,500,0011 Carroll County Pollution Control(Kentucky Utilities Company),7.450%,9/15/16 Aa2 13,569,625
Massachusetts-7.9%
79500011 Massachusetts Ilealth and Educational Facilities Authority(New England Deaconess Hospital),
6.875%,4/01/°° A 7,877,099
Massachusetts Industrial Finance Agency,Resource Recovery(SEMASS Project):
2,00(1,00(1 9.000%,7/01/15 N/R 2,090,780
9,000,000 9,250%,7/01/15 N/R 9,505,170
Massachusetts Municipal Wholesale Electric Company:
2,305,000 7.100%,7/01/01 13aa1 2;119,395
1,000,1)00 8.750%,7/01/IS Baal 1,130,99))
9,780,000 Massachusetts Water Resources Authority,6.7SONo,7/15/1'' A— 9,860,392
Michigan-3.1%
Michigan Comprchcnsiy c Transportation:
5,445,0011 5-625%,5/15/03 AA— 5,335,065
2,000,00(1 5.8750/,5/15/05 AA— 1,057,780
3,145,000 Michigan State Trunk Line.3132546, 10/01/(13 AA— 3,087,006
2,500,000 Wayne County Building Authority.I,i mited Tax.8.00110/,:3/01/17 BBB- 2,1380,300
Mississippi-0.4%
8,610,000 Mississippi Home Corporation,0.000"/1,9/15/16 A 1,537,316
Montana-0.3%
1,215(10(1 Montana Board of Housing.Single Family Program, 10.2(111'11, 12/01/02 AA 1,31)1,612
Nebraska-4.6%
5,1345,000 Grand Island Electric System.6.11111°m-9/01/12 Al 5,362,073
Omaha Public Power District:
3,000,1100 5.750%,2/01/08 AA 2,842,050
11,935,00(1 6500°/x,2/01/17 AA 10,910,615
23
Nuveen Exchange-Traded Funds
Annual Report
October 31,1992
PORTFOLIO OF INVESTMENTS
Premier Income-continued.
Principal Market
Amount Description Ratings* Value
New Hampshire-2.4%
S 9,000,000 New Hampshire Industrial Development Authority,Resource Recovery(SES Concord Project),
8.500%,1/01/09 A 8 9,999,720
New York-8.0%
6,500,000 Dormitory Authority of the State of New York,Consolidated Revenue(City University),
7.625%,7/01/20 Baal 0,941,285
5,000,000 New York Local Government Assistance Corporation,7.500°/o,4/01/20 A 5,329,100
10,000,000 New York State Urban Development Corporation,State Facilities Revenue,7.500%,4/01/20 Baal 10,507,600
3,000,000 Buffalo Sewer Authority,7.4325%,7/01/06 Aaa 3,281,400
Metropolitan Transportation Authority,Transit Facilities Revenue:
:3,195,000 8.100%,7/1)1/17 BBB+ 3,394,304
1,625,000 8.100%,7/01/17(Pre-refunded to 7/01/93) Aaa 1,721,198
2,100,000 New York City General Obligation,6.625°/0,8/01/12 Aaa 2,123,373
North Carolina-2.7%
11,220,000 North Carolina Housing Finance Agency,Multi-Family Housing,-6.900%,7/01/24 AA 11,177,701
Ohio-2.6%
8,500,000 Akron-Bath-Copley Joint Township Hospital District(Akron City Hospital),8.875%, 11/15/07 Al 9,707,425
1,160,000 Toledo-Lucas County Port Authority,7.750%,5/15/07 N/R 1,144,062
Oklahoma-0.9%
1,685,000 Oklahoma Housing Finance Agency,Single Family Mortgage, 10.750%,3/01/07 Aa 1,792,941
1,675,000 Tulsa Airports Improvement Trust(Tulsa International Airport),Alternative Minimum'Fax,
7.700%,6/01/1:3 Aaa 1,796,186
Pennsylvania-4.5%
2,000,000 Falls Township Hospital Authority(Delaware Valley Medical Center),7.000%,8/01%9'' AAA 2,060,280
2,000,000 Northampton County Hospital Authority(Easton Hospital),6.900%, 1/01/09 BBB 1,967,820
7,750,000 Philadelphia Water and Sewer System,7.350%,9/01/1)4 131313 8,057,365
Philadelphia Hospital and Higher Educational-Facilities Authority(Children's Seashore House):
2500,000 7.01111%,8/15/19 B1313+ 2,460,200
4,450,0011 7.000%,8/l5/ BBB+ 4,293,227
Texas-4.0%
9,500,000 Harris County Health Facilities Development Corporation,7.375%, 12/01/25(Mandatory put
12/(11/98) Aa1 0,895,295
1,500,000 Midland County Hospital District,7.500%,6/01/16 BBB 1,530,075
5,000,000 Victoria Housing Finance Corporation,Single Family Mortgage,8.500%,1/01/11 A 5,268,650
Utah-12%
2,500,000 Utah State Board of Regents Student Loan,Alternative Minimum Tax,6.550%, 11/01/06 Aaa 2,484,275
Intermountain Power Agency:
3,01)0,000 10.375%,7/01/16 AA 3,470,970
1,500.000 7.750%,7/01/17 AA 1,604,685
Virginia-3.0%
Virginia Housing Development Authority:
5,000,000 7.100%, 1/01/22 Aa 5,129,150
7,000,000 7.150%, 1/(11/33 Aa 7,196,770
Sec accompanying'roles to financial statements. 941' A0"T ? 13
Y
24
Principal Market
Amount Description Ratings* Value
Washington-6.9%
8 13,000,000 Washington General Obligation,6.250%,2/01/11 AA $ 12,689,430
2,500,000 Washington Health Care Facilities Authority(Sacred Heart Medical Center Spokane),
6.875%,2/15/17 AA— 2,490,375
Washington Public Power Supply System.Nuclear Project No. 1:
2,970,000 6.800%,7/01/17 AA 2,987,375
5,400,000 6.875°1%n,7/01/17 AA 5,444,388
5,000,000 Washington Public Power Supply System,Nuclear Project No.2,5.70051,7/01/12 AA 4,931,000
West Virginia-1..%
6,775,000 West Virginia housing Development fund,7200%,11/01/20 Art 6,877,98(1
Wisconsin-2.1%
5,950,000 Wisconsin Housing and Economic Development Authority,6.850%, 11/(11/12 Al 5,864,493
2,985,000 Silver Lake Sanitary District,Sewer System,8.000%, 10/01/18 N/R 2,927,181
Wyoming-1.0%
4,000,0110 Wyoming Community Development Authority,Single Family Mortgage Bonds,7.750%,66/1)1/09 AA 4,123,120
$408,160,000 Total Investments-(cost 8404,046,190%) 97.9% 407,201,464
Other Assets Less liabilities-2.1% 8,541,261
Net Assets-0111% $415,742,725
Number
Standard&Poor's Moody's of Issues Market Value Percent
Summary-of Ratings* AAA Aaa 14 $ 44,530,902 11%
Portfolio of Investments: AA+,AA,AA- Aat,Aa,Aa2,Aa3 28 136,373,640 33
A+ Al 6 39,567,599 10
A,A- A,A2,A3 16 65.014,434 16
01311+,BBB,BBB- Baal,Baa,Baal,13aa3 18 911,045,432 22
Non-rated Non-rated 8 31,669,457 8
Total 89 $407,201,464 10(1%
' Ratings(not covered by the report of independent auditors):
Using the higher of Standard&Poor's or Moody's rating.
N/R-Investment is not rated.
901249 25
Nuveen Exchange-Traded Funds
Annual Report
October 31,1992
STATEMENT OF NET ASSETS
NQM NQS NQU NPF
Assets
Investments in municipal securities,at market value(note 7) $745,098,807 $710,081,244 $1,145,310,294 $407,201,464
Temporary investments in short-term municipal securities,at market
value which equals cult(ante 1) 9,700,000 4,500,000
,564 262,535 2,600,000
Cash 391
Receivables; 121,923 1,092,025
Interest 18,107,546 15,809,471 24,565,313 9,270,377
Investments sold 13,497,731
600,703 9,893,493 Other assets20,000
524,813 78,245 925,363 45,393
Total assets 787,320,461 731,332,198 1,183,416,386 417,629,259
Liabilities — —Payable lot investments purchased —
Accrued expenses: — 7,085,653 —
Management fees(mute(1) 396,065 400,482
Other 634,011 231,557
95,127 101,099 128,792 56,027
Preferred share dividends payable 290,531 79,626 387,524 31,416
Common share dividends payable 3,301,420 2,876,790 _ 4,42_ 8,255 1,567,534
Total liabilities 4,083,143 3,457,997 12,664,235 1,886,534
Net assets(note ;) 1
8783,237,318 $727,874,201 $ ,170,752,151 $415,742,725
('referred shares,at liquidation value $250,000,000 $240,000,000 $ 400,000,000 140,000,000
Preferred shares outstanding _ 5,000 4,800 8,000 2,800
Common shares outstanding __34,751,789 32,690,798 52,717,317 19,594,178
Net asset value per Common share outstanding(net assets less
Preferred shares at liquidation value,divided by Coinmon shares
outstanding)
$ 15.34 $ 14.92 $ 14.62 S 14.07
See arrompon(7in(t moles to film neThl stoteneenIs.
269�u 1.2 1:
STATEMENT OF OPERATIONS
NOM
NOS NOU NPF
Year Ended Year Ended Year Ended 12/19/91 to
10/31/92 10/31/92 10/31/92 10/31/92
Investment Income $55,572,526 $50,658,546 $78,783,631 $16,821,483
Interest income(note 1) ---
Expenses: 4,62:5.317 4,667,849 7,403,925 1,910,425
Preferred shares—auction
arcs-auto 6 606,593 601,645 980,652 157,260
ShSharehod iingag lees 183,432 148,637 253,773 51,612
Custodian's
servicing and
agent fees and expenses 99.604 68,072 88,722 69,430
B(;oard em fees and expenses 8,722 7,251 10,779 4,279
Professional r members'fees and expenses(note 6) 21,255 20,901 54,558 23,202
hahods 're228,440 81,393
172,951 135,897 SStock exchange
reports—printing fees iug and mailing expenses31,921 37,027 48,250 20,318
Investor ek relations listing fees 31,516 30,865 46,832 9,784
expense 41,522 19,485 _ 32,776 11,158
Other expenses — 2,338,861
5,821,033 5.737,629 9,148,707
Total expenses
Net investment income 49,851,493 44,920,917 _69,634,924 14,482,622
Realized and Unrealized Gain from Investments 236,759 298,652 591,949
255,597
Net realized gain from investment appreciation
transactions deer (ratio 3) 6,282,840 13,974,474 3,155,274
Net change in unrealized apprecral.ion or depreciation of investments 44_5_ q. 3_747,223
Net gain from investments 5,681,313 6,519,599 14,273,1_6
$55,532,806 $51 440,516 $83,908,050 $18,229,845
Net increase in net assets from operations — -- 90 ,0
57
•
9 .A.249
Nuveen Exchange-Traded Funds
Annual Report
October 31,1992
STATEMENT OF CHANGES IN NET ASSETS
NOM NOS
Year Ended Year Ended Year Ended 3/21/91 to
10/31/92 10/31/91 10/31/92 10/31/91
Operations
Net investment income $ 49,851,493 $ 49,856,971 $ 44,920,917 $ 21,062,758
Net realized gain from investment transactions 1,255,597 283,872 236,759 27,673
Net change in um•culizcd appreciation or depreciation of investments 4,425,71.6 39,955,434 6,282,840 21,392,862
Net increase in net assets from operations 55,532,806 90,096,277 51,440,516 42,483,293
Distributions to Shareholders
From net iru estment income:
Common shareholders (39,996,919) (37,349,588) (34,259,188) (13,725,984)
Preferred shareholders (8,412,334) (11,984,278) (7,914,034) (3,955,826)
Decrease in net assets from distributions to shareholders (48,409,253) (49,333,866) (42,173,222) (17,681,810)
Capital Share Transactions(note 2)
Common shares:
Net proceeds from sale of Common shares — — — 451,833,558
Net proceeds from Common shares issued to shareholders due to
reinvestment of net investmentincome distributions and
net realized gain from investment transactions 6,276,505 5,064,120 5,229,433 1,290,782
Preferred shares—net proceeds from sale of shares — 235,351,643
Net increase in net assets derived from capital share
transactions 6,276,505 5,064,120 5,229,433 688,475,983
Net increase in net assets 13,400,058 45,82(1,531 14,496,727 713,277,466
Net assets at beginning of period 769,837,260 724,010,729 713,377,474 100,008
Net assets at end of period $783,237,318 $769,837,260 $727,874,201 8713,377,474
Undistributed net investment income at end of period $ 5,574,786 $ 4,132,546 $ -6,128,643 $ 3,380,948
See mmom/Eongial/?Dins to financial.statements.
28 a :213
NCIU NPF
Year Ended 6/19/91 to 12/19/91 to
10/31/92 10/31/91 10/31/92
Operations
Net investment income $ 69,634,924 $ 14,429,643 $ 14,482,622
Net realized gain(loss)from investment transactions 298,652 (5,167) 591,949
Net change in unrealized appreciation or depreciation of investments 13,974,474 17,000,176 3,1555,274
Net increase in net assets from operations 83,908,050 31,424,652 18,229.845
Distributions to Shareholders
From net investment income:
Common shareholders (53,507,211) (8,780,850) (12,514,402)
Preferred shareholders (13,232,893) (1,085,012) (1,755.587)
Decrease in net assets from distributions to shareholders (66,740,104) (9,865,862) (14,269,989)
Capital Share Transactions(mote 2)
Common shares:
Net proceeds from sale of Common shares — 732,708,924 273,128.919
Net proceeds from Common shares issued to shareholders due to
reinvestment of net investment income distributions and
net realized gain from investment transactions 6,621,805 290,678 1,269,790
392,304,000 137,284,152
Preferred shares—net proceeds from sale of shares _ — _ — -
Netincreasein net assets derived from capital share 6,621,805 1,125,303,602 411,682,861
transactions - 5
Net increase in net assets 23,789,751 1,146,862,392 415,642,717
Net assets at beginning of period 1,146,962,400 100,008 100.01)8
Net assets at end of period $1,170,752,151 $1,146,962,400 $415,742,725
Undistributed net investment income at end of period
$ 7,458,601 $ 4,563,781 $ 212,633
921249 29
Nuveen Exchange-Traded Funds
Annual Report
October 31,1 sin
NOTES TO FINANCIAL STATEMENTS
1 General Information and At October 31, 1992,the National Funds (the"Funds") covered in this report and
Significant Accounting Policies their corresponding New York Stock Exchange symbols are Nuveen Investment
Quality Municipal Fund, Inc. (NQM), Nuveen Select Quality Municipal Fund, Inc.
(NQS), Nuveen Quality Income Municipal Fund, Inc. (NQU) and Nuveen-Premier
Income Municipal Fund,Inc. (NPF).
The Funds are registered under the Investment Company Act of 1940 as closed-
end, diversified management investment companies.
Prior to commencement of operations on December 19, 1991, NPF had no
operations other than those relating to organizational matters and the initial
capital contribution of S100,008 on December 18, 1991, from the sale of 7,118
Common shares.
The following'is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
generally accepted accounting principles.
Securities Valuation Portfolio securities for which market quotations are readily available are valued
at the mean between the quoted bid and asked prices or the yield equivalent.
Portfolio securities for which market quotations are not readily available are
valued at fair value by consistent application of methods determined in good
faith by the Board members.'l'emporary investments in securities that have
variable rate and demand features qualifying them as short-term securities are
traded and valued at principal amount.
Securities Transactions Securities transactions arc recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may be settled a month or more after the transaction date. The securities so
purchased are subject to market fluctuation during this period. The Funds have
instructed the custodian to segregate assets in a separate account with a
current value at least equal to the amount of their purchase commitments. At
October 31, 1992,there were no such purchase commitments in any of the
Funds.
Interest Income Interest income is determined on the basis of interest accrued and discount
earned, adjusted for amortization of premiums or discounts on long-term debt
securities when required for federal income tax purposes.
Federal Income Taxes The Funds intend to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies by distributing all of their income,
including any net realized gains from investments, to shareholders. Therefore,
no federal income tax provision is required. Furthermore, each Fund intends to
satisfy conditions which will enable interest from municipal securities,which is
exempt from regular federal income tax, to retain such tax-exempt status when
distributed to shareholders of the respective Funds. All income dividends paid
during the period ended October 31, 1992, have been designated Exempt Interest
Dividends.
t 12 49 •
30
Preferred Shares The following Funds have issued and outstanding$50,000 stated value Preferred
shares. Each Fund's Preferred-shares are issued in one or more Series. The
dividend rate on each Series may change every 7 days (except for NUM-Series M,
NQS-Series T and NQU-Series W which have lengthened their current dividends
from 7 days to three years and NQU-Series M which has lengthened its current
dividend from 7 days to one year) as set by the Auction Agent.The number of
shares outstanding,by Series and in total, for each of the Funds is as follows:
NOM NQS NQU NPF
Number of Shares:
Series M 1,250 1,000 1x00 —
Series T 1,250 1,000 1,500 1,400
Series W 1,250 1,400 1,500 —
Series'ru 2,000 1,400
Series F 1,250 1,400 1,500 —
Total 5,000 4,800 8,000 2,800
Organization and Offering Costs Costs incurred in the initial period by the following Funds in connection with
their organization and offerings of both the Common and Preferred shares were
as follows:
NQS NQU NPF
$5,927,299 $9,016,995 $3,561,929
These costs were recorded as a reduction of the proceeds from the sale of the
shares.
2 Fund Shares Transactions in Common and Preferred shares were as follows:
NQM NQS
Year Ended Year Ended Year Ended 3/21/91 to
10/31/92 10/31/91 10/31/92 10/31/91
Common Shares:
Shares sold — 32,250,000
Shares issued to shareholders due to
reinvestment of net investment income
distributions and net realized gains
from investment transactions 391,649 3.32,720 346,399 87,281
Net increase 391,649 332,720 346,399 32,337,281
Preferred Shares sold — — 4,800
93213 31
Nuveen Exchange-Traded Funds
Annual Report
October 31,1992
NOTES TO FINANCIAL STATEMENTS
2 Fund Shares NQU NPF
(Continued)
Year Ended 6/19/91 to 12/19/91 to
10/31/92 10/31/91 10/31/92
Common Shares:
Shares sold — 52,250,000 19,500,000
Shares issued to shareholders due to
reinvestment of net investment income
distributions and net-realized gains
from investment transactions 440,492 19,707 87.000
Net.increase 440,492 52,269,707 19,587,060
('referred Shares sold 8,000 2,800
3 Securities Transactions Purchases and sales (including maturities) of investments in municipal
securities and temporary municipal investments during the period ended
October 31, 1992,were as follows:
NQM NQS NQU NPF
Year Ended Year Ended Year Ended 12/19/91 to
10/31/92 10/31/92 10/31/92 10/31/92
Purchases
Investments in municipal securities $41,386,559 $48,796,900 $372,837,528 $447,162,481
Temporary municipal investments 70,540,500 94,694,725 112,535,000 413,135,000
Sales and Maturities
Investments in municipal securities 53,120,480 35,065,705 91,504,764 42,789,366
Temporary municipal investments 62,240,500 95,693,000 471,159,7511 413,135,000
At October 31, 1992,the identified cost of investments owned for federal income
tax purposes was the same as the cost for financial reporting purposes for each
Fund.
4 Distributions to Common Shareholders On November 2, 1992, the Funds declared Common share dividend distributions
and supplementary dividend distributions from their undistributed income which
were paid December 1, 1992, to shareholders of record on November 15, 1992, as
follows:
NOM NOS NQU NPF
Dividend per share 8.0950 $.0880 $.0840 $.0800
Supplementary dividend per share $.0200 $.0400 $.0250 $ —
32
9a1249
5 Unrealized Appreciation(Depreciation) Gross unrealized appreciation and gross unrealized depreciation of investments
at October 31, 1992,were as follows:
NOM NQS NQU NPF
Gross unrealized:
Appreciation $45,105,999 $28,553,247 $33,326,658 $5,666,878
Depreciation (1,653,935) (877,545) (2,352,009) (2,511,604)
Net unrealized appreciation $43,452,064 $27,675,702 $30,974,649 $3,155,274
6 Management Fees and Other Under the Funds'investment management agreements with Nuveen Advisory
Transactions with Affiliates Corp. (the"Adviser"), a wholly owned subsidiary of John Nuveen&Co.
Incorporated, each Fund pays to the Adviser an annual management fee,
payable monthly, at the rates set forth below,which are based upon the average
daily net asset value of each Fund:
Management Fee
Average Daily Net Asset Value NOM NOS,NQU,NPF
For the first$500,000,000 .6 of 1% .65 of 1%
For the next$500,000,000 .575 of 1% .625 of 1%
For assets over$1,000,000,000 .55 of 1% .6 of 1%
The fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities.The Funds pay no
compensation directly to those board members who are affiliated with the Adviser
or to their officers,all of whom receive remuneration for their services to the
Funds from the Adviser.
7 Composition of Net Assets At October 31, 1992, net assets consisted of:
NOM NOS NQU NPF
Preferred shares,550,000 stated value per
share,at liquidation value $250,000,000 $240,000,000 S 400,000,000 $140,000,000
Common shares,$.01 par value per share 347,518 326,908 527,173 195,942
Paid-in surplus 482,417,440 453,482,667 731,498,243 271,586,927
Undistributed net investment income 5,574,786 6,128,643 7,458,601 212,633
Undistributed net realized gain from
investment transactions 1,445,510 260,281 293,485 591,949
Net unrealized appreciation of
investments 43,452,064 27,675,702 30,974,649 3.155,274
Net assets $783,237,318 $727,874,201 $1,170,752,151 $415,742,725
Authorized shares:
Common 200,000,000 200,000,000 200,000,000 200,000,000
Preferred 1,000,000 1,000,000 1,000,000 1,000,000
912'19 33
Nuveen Exchange-Traded Funds
Annual Report
October 31,1992
NOTES TO FINANCIAL STATEMENTS
8 Investment Composition Each Fund invests in municipal securities which include general obligation,
escrowed and revenue bonds.At October 31, 1992, the revenue sources by
municipal purpose for these investments, expressed as a percent of total
investments,were as follows:
NOM NOS NOU NPF
Revenue Bonds:
Housing Facilities 27% 32% 25% 24%
Health Care Facilities 13 8 17
Electric Utilities 15
12 17 6 IS
Transportation 5 11 10 IS
Pollution Control Facilities 9 5 7 6
Lease Rental Facilities 7 — 2 3
Water/Sewer Facilities 7 4
Other Revenue 7
10 5 15 9
General Obligation Bonds 1 1 3 Ll 9
Escrowed Bonds 9 15 7
100% 100% 1000/s 100%
In addition, certain long-term and intermediate-term investments owned by
the Funds are backed by insurance issued by several private insurers who
guarantee the payment of principal and interest in the event of default (20%for
NQM,3t/o for NQS, 21%for NQU and 3% for NPF). Such insurance, however,does
not guarantee the market value of the municipal securities or the value of the
Funds' shares.
All of the temporary investments in short-term municipal securities have credit
enhancements (letters of credit, guarantees or insurance) issued by third party
domestic or foreign banks or other institutions.
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
7 7 ir9
34 Sarni
SUPPLEMENTARY INFORMATION-
SELECTED PER SHARE DATA AND RATIOS
Selected data for a Common share outstanding th TIM ghoul each period is as follows:
Distributions of Net
Realized Gains frondNumber of Shares
Dividendsfrom Net N Or amra- Investment N ou2mofinya t
Investment Income 9 Transactions
Real'reeeft lion and End of Period
Common and Offering Commas tin Thonsandsl
share Unreal- Costs and share Net path of Ratio of
Equivalent fixed Gain Preferred Equivalent Increase Net Net Expenses Net Preferred
Net Pad to Paid to fLossl share Paid to Paid to (Decrease) Asset Asset 1e Investment Illy uida-
Invest Common Preferred from Under Common Preferred in Net Value Value Average Income to Portfolio fits Value
Investment Operating merit share- share Invest- writing shaft- share- Asset Beginning End of Net Average Turnover of$50,000
NQM Income Expenses Income holders holders memo Discounts homers holders have of Pa rind Period Assets Nat Assets Rate Common per nnarel
Year Ended 10/31,
11)92 $1.609 (.168) 1.441 (1.157) (.243) .169 - - - .2111 15.130 15.3411 .713'6 6 37Na 5 34,752 5
1991 51.621 (.164) 1.457 (1.1192) (.35(1) 1.185 — — — 1.'2011 13930 15.130 /534 6.07°/m 3S 34,3611 5
6/21/901010/31/90 $ .3:0f) (.038) .318 ( .178) (.034) (.027) (.199) -- - (.120) 1.1050 13930 7233,* 0.06Wd' 0"/p 34,027 5
NOS
Year Ended 10/31/92 81.555 (.170) 1.370 (1.053) (.243) 497 - - - 280 14.1311) 14.1120 .79Ni 6.184/0 5°%1 32691 5
3/21/91 to 10/31/91 $ .742 (089) .1153 (.425) (.124) .1171 (.185) - - .5911 14.050 11114(1 79'!-i' .5.81%* 11" 32,344 5
NQU
Year Ended 10/31/92 $1.499 (.174) 1.325 (1.019) (.252) .270 - - - .:330 14290 11.020 .78933 5.115% 33"3, 52,717 8
6/19/01 to 1(1/31/91 $ .316 (.040) .276 (.108) (.021) .329 (.176) - - 240 11.1)50 14.290 .74'2(1' 5.1333,' 0% 52,277 £
NPF
12/19/91 to 10/31/92 $ .8011 (.119) .741 (64(1) (.090) .191 (.182) --- - .020 14.1)50 14.070 79'Vn" 4.91%* 1011kI* 19,59-1
9flZ 9
Nuveen Exchange-Traded Funds
Annual Report
October 31,1992
REPORT OF INDEPENDENT AUDITORS
The Boards of Directors and Shareholders
Nuveen Investment Quality Municipal Fund,Inc.
Nuveen Select Quality Municipal Fund, Inc.
Nuveen Quality Income Municipal Fund, Inc.
Nuveen Premier Municipal Income Fund, Inc.
We have audited the accompanying statements of net assets, including the
portfolios of investments,of Nuveen Investment Quality Municipal Fund, Inc.,
Nuveen Select Quality Municipal Fund,Inc., Nuveen Quality Income Municipal
Fund, Inc. and Nuveen Premier Municipal Income Fund,Inc. as of October 31,
1992, and the related statements of operations and changes in net assets and
selected per share data and ratios for the periods indicated thereon.These
financial statements and per share data and ratios are the responsibility of the
Funds'management. Our responsibility is to express an opinion on these
financial statements and per share data and ratios based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards.Those-standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and per share
data and ratios are free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of investments owned as of
October 31, 1992,by correspondence with the custodian and brokers.An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation.We believe that our audits provide a reasonable basis for our
opinion.
In our opinion,the financial statements and selected per share data and ratios
referred to above present fairly, in all material respects,the financial position of
Nuveen Investment Quality Municipal Fund,Inc.,Nuveen Select Quality
Municipal Fund,Inc., Nuveen Quality Income Municipal Fund, Inc. and Nuveen
Premier Municipal Income Fund, Inc. at October 31, 1992, and the results of their
operations,changes in their net assets and selected per share data and ratios
for the periods indicated in conformity with generally accepted accounting
principles.
4)..44441t "ft elA7
Chicago,Illinois
December 14, 1992
36 901213
NUVEEN EXCHANGE -TRADED FUND
DIVIDEND REINVESTMENT PROGRAM
Convenience and Recordkeeping Common shareholders can conveniently reinvest dividends and/or capital gain
distributions in additional common shares of their Fund at reduced transaction
cost by participating in their Fund's Dividend Reinvestment Plan.
If a shareholder chooses to reinvest both dividends and capital gain
distributions,these will be promptly and automatically invested in additional
Fund shares.A shareholder also can choose to receive income dividends in cash
and reinvest only capital gain distributions.All reinvestments are invested in full
and fractional shares and are kept in non-certificated form by the Plan Agent,
U.S. Trust,to protect against loss, theft,or inadvertent.destruction of
certificates.A shareholder who does not-elect to participate in the Plan will
receive all such amounts in cash paid by check mailed directly to the record
shareholder.The automatic reinvestment of dividends and distributions will not
relieve participants of any income taxes that may be payable on dividends or
distributions.
Fund shares received under the Plan either will be purchased on the open
market by U.S. Trust,or will be newly issued by the Fund.In the case of open
market purchases, a pro rata portion of the applicable brokerage commissions
will be paid by participants; these commissions on block transactions will
generally be lower than those charged on individual, smaller transactions.
The number of shares equivalent to the cash distribution will be determined as
follows:
(1) If shares are trading at net asset value or at a premium above net
asset at the time of valuation,the Fund will issue new shares at the then
current market price;
(2) If shares are trading at a discount from net asset value at the time of
valuation,U.S. Trust will receive the dividend or distribution in cash and
apply it to the purchase of shares in the open market, for the
participants' account. As a result of increases in the market price prior
to the time U.S. Trust has completed its purchases, the average
purchase price per share paid by U. S. Trust may exceed the market
price at the time of valuation, resulting in the acquisition of fewer shares
than if the dividend or distribution had been paid in shares issued by the
Fund.L.S.Trust will use all dividends and distributions received in cash
to purchase shares in the open market within 30 days of the dividend
payment date.Interest will not be paid on any uninvested cash
payments.
A detailed shareholder statement is issued monthly by U.S. Trust for each Plan
participant. This statement shows total dividends and distributions,(late of
investment, shares acquired and price per share,and total shares of record held
by the shareholder and by U.S. Trust for the shareholder.
9ainn3 37
Nuveen Exchange-Traded Funds
Annual Report
October 31,1992
NUVEEN EXCHANGE -TRADED FUND
DIVIDEND REINVESTMENT PROGRAM
(Continued)
How to Establish Your All common shareholders of Nuveen Exchange-Traded Funds can enroll in the
Reinvestment Account Plan. If shares are held in the shareholder's name,the shareholder may enroll or
withdraw from the Plan either via telephone or in writing.To enroll in or
withdraw from the Plan,or to obtain a brochure containing further information
about the Plan, call U.S.Trust at 1.800.257.8787 or write to:
U.S.Trust
Nuveen Exchange-Traded Fund Reinvestment
770 Broadway
New York,New York 10003-9598
Shareholders who have shares registered in the name of a brokerage firm,bank
or other nominee should ask that firm if it will participate in the Plan on the
shareholder's behalf. If not, the shareholders can request to have shares re-
registered in their own name and apply for a reinvestment account directly.
Participants whose shares are registered in the name of a firm may not be able
to transfer the shares to another firm and continue to participate in the Plan.
When a participant withdraws from the Plan or upon termination of the Plan,
certificates for whole shares credited to his or her account under the Plan will be
issued and a cash payment will be made for any fraction of a share credited to
such account;or if a participant so desires, the Plan Agent will sell his or her
shares in the Plan and send the proceeds to the participant,less brokerage
commissions and a$2.50 service fee.
Experience under the Plan may indicate that changes are desirable.Accordingly,
the Fund reserves the right to amend or terminate the Plan.There is no direct
service charge to participants in the Plan; however, the Fund reserves the right
to amend the Plan to include a service charge payable by the participants.
''' ₹ • a.-
0
FORM 10-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
SEGURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1992
OR
0 TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 1-11123
THE JOHN NUVEEN COMPANY
(Exact name of registrant as specified in its charter)
Delaware 36-3817266
(State orother jurisdiction of (I.R.S.Employer
incorporation or organization) Identification No.)
333 West Wacker Drive 60606
Chicago, Illinois (Zip Code)
(Address of principal executive offices)
Registrant's telephone number, including area code: 312-917-7700
Securities registered pursuant to Section 12(b) of the Act:
Class A Common Stock, $.01 par value New York Stock Exchange
(Title of Class) (Name of each exchange on which registered)
Securities registered pursuant to Section 12(g) of the Act:
None.
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13
or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period
that the Registrant was required to file such reports),and (2) has been subject to such filing requirements for
the past 90 days.
Yes ✓ No
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not
contained herein, and will not be contained, to the best of Registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [
The aggregate market value of the outstanding Common Stock held by non-affiliates of the Registrant on
March 22, 1993 was $268,067,581.
The number of shares of the Registrant's Common Stock outstanding at March 22, 1993,was 38,550,568,
consisting of 9,990,568 shares of Class A Common Stock, $.01 par value, and 28,560,000 shares of Class B
Common stock, $.01 par value. t'
m H
uo
DOCUMENTS INCORPORATED BY REFERENCE m
NV-
Portions of the Registrant's 1992 Annual Report to Shareholders are incorporated by reference into
Parts II and IV of this report. Portions of the Registrant's Proxy Statement relating to the annual meeting of r,,aaaoAee mafa3d
stockholders to be held May 19, 1993 are incorporated by reference into Parts I and III of this report.
931249
PART I
Item 1. Business
General
The John Nuveen Company (together with its subsidiaries, the "Company"), through
its wholly-owned subsidiaries--John Nuveen & Co. Incorporated ("Nuveen & Co."), Nuveen
Advisory Corp. ("Nuveen Advisory") and Nuveen Institutional Advisory Corp. ("Nuveen
Institutional Advisory")--is a specialist in the municipal securities business. The Company
specializes in the sponsorship, marketing and management of tax-free investment products,
and in municipal finance. Currently, the Company sponsors more than 150 tax-free
investment products ("Tax-Free Investment Products"), including unit investment trusts
("UITs"), mutual funds and money market funds ("Money Market Funds") (together,
"Mutual Funds"), and closed-end funds that issue common stock traded on stock exchanges
in the United States and, in some cases, also issue preferred stock ("MuniPreferred® Stock")
("Exchange-Traded Funds").
The Company's principal businesses consist of sponsoring and providing investment
advisory, administrative and distribution services to the Mutual Funds and Exchange-Traded
Funds (together, the "Funds" or "Nuveen Funds"), sponsoring and distributing UITs and
monitoring their portfolios, underwriting and trading municipal bonds, and providing other
municipal finance investment banking services.
The Company is the successor to a business formed in 1898 by Mr. John Nuveen to
serve as an underwriter and trader of municipal bonds. This core business was augmented in
1961 when the Company developed and introduced its first tax-free UIT, which is a fixed
portfolio of municipal securities selected and purchased by the Company and deposited in a
trust. The Company introduced its first tax-free Mutual Fund in 1976 (the year in which
Congress first permitted management investment companies investing in municipal securities
to pay dividends that retain their tax-exempt character), its first Money Market Fund in
1981, and its first Exchange-Traded Fund in 1987.
The Company was incorporated in the State of Delaware on March 23, 1992 as a
wholly-owned subsidiary of The St. Paul Companies, Inc. ("St. Paul"). Nuveen & Co., the
predecessor of the Company, had been a wholly-owned subsidiary St. Paul since 1974. On
May 19, 1992, St. Paul sold in a public offering a portion of its ownership interest in the
Company. As of the date of this report, St. Paul owned 74.1% of the outstanding voting
securities of the Company.
The Nuveen Managed Funds
Overview
While the investment objectives of the Funds vary, each has as a primary objective
the production of income free from regular federal income tax, and each historically invests
exclusively in municipal securities.
Page 2
931249
The Mutual Funds continually offer to sell and redeem their shares at prices based on
the daily net asset values of their portfolios. The Mutual Funds are actively managed and
include insured and uninsured nationally-diversified and state-specific portfolios, as well as
several Money Market Funds. Money Market Funds are Mutual Funds that invest solely in
short-term, liquid and relatively low-risk securities and seek to maintain a stable net asset
value of$1 per share.
The Exchange-Traded Funds also have actively-managed tax-free investment
portfolios but do not continually offer to sell and redeem their shares. Like the Mutual
Funds, the Exchange-Traded Funds include national and single-state funds. Many of the
Exchange-Traded Funds also have a "leveraged" capital structure; these funds issue
MuniPreferred Stock that pays dividends at rates based on short-term tax-free interest rates,
while the capital raised by the sale of the MuniPreferred Stock is invested by the fund in
longer-term municipal securities. So long as the return provided by the longer-term
investments, net of expenses, exceeds the current dividend rate on the preferred stock,
investors in the common stock of leveraged funds realize a higher rate of return than if the
fund were not leveraged. Leverage results, however, in greater volatility of the net asset
value of shares of common stock of leveraged funds and possibly in their market value as
well. In addition, fluctuations in the preferred stock dividend rate may affect the return to
holders of common stock. To the extent that the dividend rate on the preferred stock
increases (e.g., in the event of a rise in short-term interest rates), the rate of return to fund
common shareholders will be reduced. If the preferred stock dividend rate were to exceed
the net return on the investment portfolio, holders of common stock would realize a lower
rate of return than if the fund were not leveraged.
The Exchange-Traded Funds also include a series of managed funds containing bonds
with intermediate characteristics (the "Select Maturities Funds"), and the Select Portfolios, a
series of investment portfolios which are managed for stability of income and, unlike the
other Nuveen Exchange-Traded Funds, provide for the return of principal to investors upon
reaching a fixed termination date (the "Portfolios").
The common shares of most of the Exchange-Traded Funds are listed on the New
York Stock Exchange; the shares of several of the Funds are listed on the American Stock
Exchange. The common shares of the Exchange-Traded Funds trade in the open market at a
price that is a function of supply and demand, influenced by several factors, including net
asset value and yield. Although the common shares of the Exchange-Traded Funds have
generally traded at a premium to net asset value, such shares have occasionally traded at a
discount from net asset value. The Board of Directors of each Exchange-Traded Fund has
determined that, at least annually, it will consider action that might be taken to reduce or
eliminate any material discount to net asset value at which such shares may be trading, which
may include the repurchase of such shares in the open market or in private transactions, the
making of a tender offer for such shares at net asset value, or a proposal to the shareholders
to convert the Fund to an open-end investment company. The consequence of any such
action, if taken, could be a reduction in both the aggregate net asset value of the Exchange-
Traded Funds and in the management fee paid by such Funds to Nuveen Advisory or Nuveen
Institutional Advisory, as the case may be.
The Nuveen Funds include five Money Market Funds. Although under no legal
obligation to do so, in the past some money market fund managers, including the Company,
901249 Page 3
have voluntarily, and at their own expense, taken action to protect the value of fund assets
when portfolio bond credit or related financial guarantees have deteriorated. These actions
have included, in the case of several money market fund sponsors, purchasing securities from
the fund portfolio at par, and in the case of the Company, arranging for supplemental credit
and liquidity enhancements in order to preserve the value of the fund's investment. Although
the Company is under no obligation to do so, circumstances may arise in the future in which
the Company may determine to take similar action; such action could involve substantial
expense to the Company.
Assets Under Management
At December 31, 1992, there were 16 Mutual Funds, five Money Market Funds and
56 Exchange-Traded Funds with aggregate total net assets of approximately $27 billion. The
following table shows Fund assets under management at December 31 of the past three years.
NUVEEN MANAGED FUNDS
NET ASSETS UNDER MANAGEMENT
December 31.
1990 1991 1992
(in millions)
Mutual Funds $ 1,927 $ 2,603 $ 3,767
Money Market Funds 2,869 3,110 2,634
Exchange-Traded Funds 8.440 16.289 20.851
Total $13,236 $22,002 $27,252
Advisory Fees
Nuveen Advisory provides investment management services to the Funds (other than
the Portfolios, which are advised by Nuveen Institutional Advisory) pursuant to investment
management agreements, and receives fees based on each Fund's average daily net assets or
on a combination of the average daily net assets and gross interest income. The following
table shows management fees for the past three years.
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931249
NUVEEN MANAGED FUNDS
INVESTMENT ADVISORY FEES
Year Ended December 31,
1990 1991 1992
(in thousands)
Mutual Funds:
Management Fees $ 8,276 $10,830 $ 15,575
Less: Reimbursed Expenses 44 21 524
Net Management Fees $ 8.232 $10.809 $ 15.051
Money Market Funds:
Management Fees $11,455 $13,292 $ 12,495
Less: Reimbursed Expenses 357 260 434
Net Management Fees $11.098 $13.032 $ 12.061
Exchange-Traded Funds:
Management Fees $40.780 $70.000 $119.830
Total $60.110 $93,841 $146,942
The Company's management fee schedules currently provide for fees ranging from .4
of 1% to .5 of 1% of net asset value annually in the case of the Money Market Funds, and
.5 to .55 of 1% in the case of the other Mutual Funds. Fees in the case of the Exchange-
Traded Funds currently range from .6 of 1% to .65 of 1%, except that with respect to the
Select Maturities Funds, the fees are .5 of 1%, and with respect to the Portfolios, the
investment management agreements provide for an initial portfolio structuring fee and annual
management fees ranging from .25 to .30 of 1%. In each case, the management fee
schedules provide for reductions in the fee rate at greater asset levels.
Investment Management Agreements
Each Nuveen Fund has entered into an investment management agreement with
Nuveen Advisory or, in the case of the Portfolios, with Nuveen Institutional Advisory (each,
an "Adviser"). Although the specific terms of each such agreement vary, the basic terms of
the agreements are similar. Pursuant to the agreements, the Adviser provides overall
management services to each of the Funds, subject to the supervision of each Fund's Board
of Directors and in accordance with each Fund's fundamental investment objectives and
policies. The investment management agreements are approved by Fund shareholders and
their continuance must be approved annually by the directors of the respective Funds,
including a majority of the directors who are not "interested persons" of the Adviser, as
defined in the Investment Company Act. Amendments to such agreements must be approved
by Fund shareholders. Each agreement may be terminated without penalty by either party
upon 60 days' written notice, and terminates automatically upon its assignment (as defined in
the Investment Company Act and the Investment Advisers Act). Such an "assignment" will
take place in the event of a change in control of the Adviser. Under the Investment
Company Act, a change in control of the Adviser would be deemed to occur in the event of
certain changes in the ownership of the Company's voting stock. If a termination of the
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91249
investment management agreements should occur for any reason, there can be no assurance
that the Funds would renew their investment management agreements with the Adviser.
Each Fund bears all expenses associated with its operation and the issuance and, in
the case of the Money Market and Mutual Funds, redemption of its securities, except for the
compensation of directors and officers of the Fund who are employed by the Company
and/or the Adviser. Several investment management agreements provide that, to the extent
certain enumerated expenses exceed a specified percentage of a Fund's or a portfolio's
average net assets for a given year, the Adviser will absorb such excess through a reduction
in the management fee and, if necessary, pay such expenses so that the year-to-date net
expense will not exceed the specified percentage. During 1992, the expense ratios specified
in these provisions ranged from .45% for certain of the Money Market Funds, to .75% for
certain of the long-term uninsured Mutual Funds, to .975% for the long-term insured Mutual
Funds, and Nuveen Advisory reimbursed expenses aggregating $958,000 pursuant thereto.
The Company does not expect that such provisions, at current fee and expense levels, will
have any significant effect on the results of its operations. In addition, the Company may
waive all or a portion of its advisory fee to a Fund, and reimburse expenses, for competitive
reasons.
Portfolio Management and Research
Each Adviser is responsible for the execution of the investment policy of the various
Funds it advises. Investment decisions for each Fund are made by the portfolio manager
responsible for such Fund. The Company has a very low turnover rate for its portfolio
managers, and the majority of the Company's portfolio managers have devoted most of their
professional careers to municipal securities within the Nuveen organization, including
experience in financial analysis, research and surveillance, institutional and broker-dealer
sales, securities trading, and competitive and negotiated underwriting. To support these
managers, the Company maintains a research department devoted exclusively to municipal
securities. The Company's principal method of securities evaluation is through fundamental
research and valuation analysis. The Research Department conducts original market and
issuer research, utilizing such sources as independent inspection of market and issuer
activities, issuer-prepared information and publicly available information. In conducting its
analyses, the Research Department also utilizes a proprietary analytical system and
commercially available data bases and analytical services.
Unit Investment Trusts
Overview
The Company is a major sponsor of tax-free unit investment trusts. Each UIT
consists of a fixed portfolio of municipal bonds selected and purchased by the Company and
deposited in a trust. The trustee of the UITs is not affiliated with the Company. Units of
undivided beneficial interest in the portfolio of municipal bonds are sold to investors at a
price equal to the per unit market price of the bonds deposited in the trust plus a sales
charge. Following the date of deposit, the Company's Research Department continuously
monitors the bonds in the portfolio. UIT portfolios are not actively traded; once the initial
portfolio is deposited, bonds can be sold only for the purpose of raising cash to pay for units
931249`ge 6
that have been redeemed or pursuant to the Company's monitoring program. No new bonds
may be added, and bonds may be exchanged or substituted only under extremely limited
circumstances.
The Company created and introduced its first municipal bond UIT in 1961, and since
that date has deposited and sold units of more than 3,700 different trusts with an aggregate
principal value in excess of $32 billion. The Company sponsors nationally diversified and
single-state trusts, insured and uninsured trusts, and trusts of varying average portfolio
maturities. At December 31, 1992, the Company had 3,591 UITs outstanding with an
aggregate market value of $22.4 billion.
UIT Sales and UIT Revenues
The following table shows the Company's UIT sales and revenues during each of the
last three years:
UIT SALES AND REVENUES
Year Ended December 31.
1990 1991 1992
(in thousands)
UIT Sales (par value):
Primary UITs $1,687,905 $1,859,475 $1,583,701
Secondary UITs 483,456 451,619 339.549
Total $2.171,361 $2,311,094 $1,923,250
UIT Revenues:
Distribution Revenues:
Primary UITs $ 25,589 $ 29,202 $ 24,354
Secondary UITs 5,469 5,007 3.521
$ 31,058 $ 34,209 $ 27,875
Positioning Profits (Losses):
Municipal Bonds Deposited
into UITs $ 4,391 $ 5,053 $ 3,994
Primary and Secondary
UITs Sold (2,243) 2,124 (600)
$ 2.148 $ 7,177 $ 3,394
Total $ 33,206 $ 41,386 $ 31,269
Units of the Company's UITs are sold to the public with a sales charge. The
Company's UIT revenues include the sales charge, less an applicable concession to dealers
for the placement of UIT units based on the public offering price of the units sold.
The Company realizes profits or incurs losses to the extent that the market price of
bonds deposited in a trust exceeds or is less than the original cost of the bonds to the
331249 Page 7
Company. After the date of deposit, the Company is the holder of all of the units of the
particular trust series and will realize profit or incur loss depending on whether the public
offering price of units increases or decreases before the units are sold. All such positioning
profits and losses are included in the Company's Consolidated Statement of Income under
"Underwriting and Distribution of Investment Products". In connection with the
accumulation of bonds for deposit into newly created UITs, the Company attempts to manage
its exposure to interest rate fluctuations by, among other practices, attempting to match
inventory levels to the rate of sale of various types of UITs, and scheduling accumulation
and deposit so as to meet anticipated demand.
Continuing Fees
The Company receives a continuing fee for regularly evaluating the municipal bonds
in each UIT and for its program of credit monitoring. This fee, currently $.17 per annum
per $1,000 principal amount of portfolio bonds, is adjusted periodically to ensure that these
services are, as required by Section 26(a) of the Investment Company Act and Rule 26a-1
thereunder, provided by the Company at no more than its cost.
Market Making
The Company maintains a secondary market in units of the UITs that it sponsors,
buying units at a price equal to their redemption value (equal to the per unit "bid" side
market price of the bonds in the trust) and selling them to other dealers and financial
intermediaries at a price equal to the per unit "bid" side market price of the bonds in the
trust plus a sales charge, less a dealer concession. The Company, like any other unitholder,
can also tender units it holds to the UIT trustee for redemption at their redemption value.
Marketing and Distribution of Tax-Free Investment Products
Distribution
The Company markets its Funds and UITs through registered representatives (the
"Registered Representatives") associated with unaffiliated national and regional broker-
dealers, commercial banks and thrifts, and broker-dealer affiliates of insurance agencies and
independent insurance dealers, and financial planners, tax consultants and advisers associated
with registered broker-dealer firms ("Retail Distribution Firms"). The Company's
distribution strategy is to maximize the liquidity and distribution potential of its Funds and
UITs by maintaining strong relationships with a broad array of Registered Representatives.
The Company has well-established relationships with Registered Representatives in Retail
Distribution Firms throughout the country. Distribution patterns for the Company's Tax-
Free Investment Products vary among the Company's product lines. Distribution of
Exchange-Traded Fund common stock and MuniPreferred Stock tends to be more highly
concentrated among Registered Representatives associated with national and regional broker-
dealers, with the Registered Representatives associated with a relatively few Retail
Distribution Firms accounting for a substantial percentage of total sales. Sales of UITs,
Mutual Funds and Money Market Funds are more broadly distributed among the Registered
Representatives associated with many Retail Distribution Firms. Sales through the
Registered Representatives associated with a single Retail Distribution Firm did not account
for as much as 5% of the Company's consolidated revenues in 1992.
931249 Page 8
The Company currently has relationships with more than 100,000 Registered
Representatives at over 4,000 Retail Distribution Firms. These Registered Representatives
participate in the Company's marketing programs to different degrees, depending upon: their
interests in distributing tax-free investments, particularly those provided by the Company; the
profiles of their customers and their customers' needs; conditions in the financial markets;
and their views of the relative attractiveness of the Nuveen Funds and UITs. Registered
Representatives may reduce or eliminate involvement in any Nuveen marketing activity at
any time, or they may elect to emphasize the tax-free investment products of competing
sponsors, or the proprietary products of their own firm. Registered Representatives may
receive compensation incentives to sell their firm's tax-free investment products or may
choose to recommend to their customers tax-free investment products sponsored by firms
other than the Company based on such considerations as investment performance, the amount
and types of distribution compensation, sales assistance and administrative service payments
and the level and quality of customer service. In addition, the ability of Registered
Representatives to distribute the Company's Mutual Funds is subject to their firm's
continuation of a selling agreement with the Company that is terminable by either party upon
60 days' notice and does not obligate the Retail Distribution Firm to sell any specific amount
of Funds. The Company currently has such selling agreements related to the Mutual Funds
with over 1,850 Retail Distribution Firms.
Shares of the Mutual Funds (other than Money Market Funds) are sold to the public
with a sales charge, to compensate distributors for services they provide to investors. The
sales charge is calculated as a percentage of the offering price, ranging from a maximum of
4.75% to 0.50% for purchases of $5 million or more. Most of this sales charge is reallowed
as concessions to Retail Distribution Firms; at the 4.75% sales charge level, 4.25% is
typically reallowed. From time to time, the Company reallows all of the sales charge to
Retail Distribution Firms in connection with marketing programs or special promotions.
Shares of the Money Market Funds are sold to the public without sales charges.
However, each Money Market Fund (except the Nuveen Tax-Exempt Money Market Fund,
which is marketed primarily to institutions) has a plan adopted in accordance with Rule 12b-1
under the Investment Company Act (each, a "Plan") pursuant to which distributors of the
Fund's shares are compensated for costs associated with distribution and administrative
services they perform. For the year ended December 31, 1992, approximately $2.4 million
in Plan fees were paid to distributors of the Money Market Funds. Slightly more than half
of such amount was paid by the Company and the remainder was paid by the Money Market
Funds.
Shares of the Exchange-Traded Funds are sold to the public in offerings that are
underwritten by a syndication group. In the year ended December 31, 1992, 32 of such
offerings were made (including 12 offerings of MuniPreferred Stock). Nuveen & Co. and
the other underwriters of the Fund shares receive from the proceeds of the offering an
underwriting discount of$875 per $50,000 share for MuniPreferred offerings (1.75% of the
offering price), $.70 per $12.00 share for Select Maturities Fund offerings (5.83% of the
offering price), $.85 per $15.00 share for Portfolio offerings (5.67% of the offering price),
and $.95 per $15.00 share for all other Exchange-Traded Fund common stock offerings
(6.33% of the offering price). Most of this underwriting discount is paid to underwriters
based on the number of shares sold, but a portion (approximately 10%) is paid to
underwriters based on the number of shares underwritten. For the year ended December 31,
931249 Page 9
1992, substantially all of the total amount of underwriting discount paid in connection with
the offering of Exchange-Traded Funds common and preferred shares was paid to
underwriters other than Nuveen & Co.
The typical sales charge for Nuveen UITs is 4.9% of the public offering price
(5.152% of the net amount invested), with reduced sales charges for purchases of $100,000
or more. The dealer concession is $3.20 per unit (a unit represents $100 par value of bonds
in a trust) at the maximum sales charge level. The sales charges for UITs in the secondary
market are established based on the number of years remaining to maturity for each bond in
the UIT.
The markets for the sale of new tax-free exchange-traded fund common and preferred
stock and for the sale of tax-free unit investment trusts are relatively concentrated, with only
a few sponsors accounting for a majority of total sales. Based upon information available to
it, the Company believes it had a leading market share in each of these markets in each of
the last three years. The markets for tax-free mutual funds and money market funds are
highly fragmented, with many participating sponsors. Based upon information available to it,
the Company believes that it had less than a 5% share of the market with respect to net sales
of mutual funds and money market funds in each of the last three years.
Relations With Distributors
The Company maintains a sales force of more than 100 "wholesalers" and sales
assistants. Wholesalers, who are employees of the Company, work closely with individual
Registered Representatives to develop their businesses. In 1992, the Company's wholesalers
made over 50,000 office visits to distributors of the Company's Tax-Free Investment
Products to provide product information, explain new products and discuss ideas to respond
to particular investor concerns. The Company provides individual Registered Representatives
with weekly, monthly and quarterly sales bulletins, a quarterly magazine, product education
programs and training seminars, and promotional programs coordinated with its advertising
campaigns. In addition, the Company regularly coordinates its marketing and promotional
efforts with individual Registered Representatives.
Advertising and Promotion
To generate investor interest and understanding of its Tax-Free Investment Products,
the Company augments its marketing efforts through television, magazine and newspaper
advertising and the sponsoring of certain civic activities, such as the U.S. Senior Olympics
and the Chicago Lyric Opera radio broadcasts. For the year ended December 31, 1992, the
Company spent $24.5 million on advertising and promotional efforts.
Investment Banking
Overview
The Company, through its Municipal Securities Department, underwrites the sale of
municipal securities to the public and arranges for the private placement of municipal
securities with institutional investors. The Company, for its own account, acquires, holds in
inventory, and sells municipal bonds and, from time to time, U.S. government obligations.
Page 10
931249
In conjunction with its underwriting operations, the Company also provides a broad range of
financial advisory services to issuers of municipal securities, including advice on mergers and
acquisitions, capital structure and specific financing opportunities.
The Company is remarketing agent with respect to 74 issues of Variable Rate Demand
Obligations ("VRDOs") representing an aggregate principal value of $1.1 billion. VRDOs
are municipal bonds issued with a longer term (typically 25-30 year) maturity, having a
variable rate of interest and an option granted to the holder to put the obligation to the issuer
on seven days' notice and receive payment of the full principal amount. This obligation to
pay is secured by a letter of credit issued by a commercial bank. On a weekly basis the
remarketing agent, pursuant to an agreement with the issuer, resets the interest rate at a level
that the remarketing agent anticipates will permit it, as agent, to remarket at par any VRDOs
with respect to which a notice of put has been received. Although remarketing agents,
including the Company, are only obligated to use their best efforts in locating purchasers for
the VRDOs, they frequently purchase VRDOs for resale to other buyers within a few days.
During the period that the Company holds any VRDOs, it has, like any holder, the
unconditional right secured by the letter of credit to put the obligation to the issuer and
receive payment of the full principal amount. During temporary periods of imbalance
between supply and demand for VRDOs, the Company may hold substantial amounts of such
obligations for resale. The Company has come to expect such imbalances at year-end and, to
a lesser extent, at each calendar quarter-end.
Revenues
Revenues from the underwriting of municipal securities and fees from financial
advisory and remarketing activities are set forth in the following table for each of the last
three years:
Year Ended December 31,
1990 1991 1992
(in thousands)
Underwriting Revenues $ 7,759 $ 9,001 $14,592
Merger and Acquisition and Other
Financial Advisory Fees 2,445 3,156 2,232
Remarketing Fees 1.622 1.528 1 400
Total $11,826 $13,685 $18,224
Operations
During 1992, the Company was senior manager or co-manager of 127 municipal
underwritings totaling $4.7 billion. The majority of the bonds issued in these offerings were
sold to institutions, with a small percent (less than 5%) sold to Nuveen UITs. The Company
is prohibited from engaging in any securities transactions with the Funds.
931249 Page 11
Inventory Positions
The Company regularly purchases and holds in inventory, for its own account, municipal
securities and UIT units. Periodically, the Company inventories U.S. government securities
for future delivery to municipal issuers in connection with new municipal underwritings.
Inventory positions are recorded at market value and unrealized gains and losses are reported
in the Company's operating results. The level of inventory maintained by the Company will
fluctuate daily and is dependent upon the need to maintain municipal inventory for future
UITs, the need to maintain UIT inventory to support ongoing sales, and the periodic need to
carry U.S. government inventory for new municipal underwritings.
The market value of the Company's inventory at December 31 of each of the last three years
and the average daily inventory balances outstanding during each year are set forth below:
Average Daily Inventory
Inventory,at market value (par value)
on December 31, for year ended December 31,
1990 1991 1992 1990 1991 1992
(in thousands)
Nuveen UlTs $127,752 $ 42,579 $ 59 231 $ 51,507 $ 74 790 $ 76,808
Tax-free Notes and Bonds
Held for:
Deposit in U1Ts $ 1,348 $ 18,551 $ 5,110 $ 24,607 $34,610 $ 28,979
Resale 8 136 6 130 4,168 20,092 2 650 3 023
Total Tax-free Notes and Bonds $ 9,484 $ 24,681 $ 9 278 $ 44,699 $ 37,260 $32,002
U.S. Government Securities $ - $ - $ 9452 $ 1,762 $ 6990 $ 33,095
Joint Venture
In 1990, Nuveen Institutional Advisory and Duff & Phelps Investment Management
Co., a registered investment adviser and wholly-owned subsidiary of Duff & Phelps
Corporation, formed Nuveen•Duff & Phelps Investment Advisors ("Nuveen•D&P), an
Illinois general partnership. Nuveen•D&P was created to provide investment supervisory
services to qualified and non-qualified public utility nuclear power plant decommissioning
funds and/or their trustees. As of December 31, 1992, Nuveen•D&P managed 13 portfolios
with assets valued at $150.8 million.
Employees
At December 31, 1992, the Company had 537 full-time employees. Employees are
compensated with a combination of salary, discretionary bonus and fringe benefits. The
Company has sought to retain its senior employees through competitive compensation
arrangements and, to date, believes it has been successful in this regard.
931249 Page 12
Competition
The Company is subject to substantial competition in all aspects of its business. The
Registered Representatives that distribute the Company's Tax-Free Investment Products also
distribute numerous competing products, often including products sponsored by the Retail
Distribution Firms where they are employed. In recent years, competition among securities
firms has adversely affected the profitability associated with the underwriting of municipal
securities. In addition, the tax-free investment industry continues to attract new entrants.
There are relatively few barriers to entry by new investment management firms. An ever
increasing number of tax-free investment products are sold to the public by broker-dealers,
banks, insurance companies and others, and many competing tax-free investment product
sponsors offer a broader array of investment products, which may include not only tax-free
investment products, but taxable income funds, equity funds and other investment products as
well. Many of these institutions have substantially greater resources than the Company. The
Company competes with other providers of tax-exempt products primarily on the basis of the
range of products offered, the investment performance of such products, quality of service,
fees charged, the level and type of broker compensation, the manner in which such products
are marketed and distributed, and the services provided to investors.
Regulation
Nuveen & Co. is registered as a broker-dealer under the Securities Exchange Act of
1934 and is subject to regulation by the Securities and Exchange Commission (the
"Commission"), the National Association of Securities Dealers, Inc., the Municipal Securities
Rulemaking Board and other federal and state agencies and self-regulatory organizations.
Nuveen & Co. is subject to the Commission's Uniform Net Capital Rule, designed to enforce
minimum standards regarding the general financial condition and liquidity of a broker-dealer.
Under certain circumstances, this rule may limit the ability of the Company to make
withdrawals of capital and receive dividends from Nuveen & Co. Nuveen & Co.'s
regulatory net capital has consistently exceeded such minimum net capital requirements. At
December 31, 1992, Nuveen & Co. had aggregate net capital, as defined, of approximately
$166.0 million, which exceeded the regulatory minimum by approximately $163.1 million.
The securities industry is one of the most highly regulated in the United States, and failure to
comply with related laws and regulations can result in the revocation of broker-dealer
licenses, the imposition of censures or fines and the suspension or expulsion from the
securities business of a firm, its officers or employees.
Each of the Advisers is registered with the Commission under the Investment
Advisers Act. Each Fund and UIT is registered with the Commission under the Investment
Company Act and each national Fund is qualified for sale (or not required to be so qualified)
in all states in the United States and the District of Columbia; each single-state Fund is
qualified for sale (or not required to be so qualified) in the state for which it is named and
other designated states. Virtually all aspects of the Company's investment management
business are subject to various federal and state laws and regulations. These laws and
regulations are primarily intended to benefit the tax-free investment product holder and
generally grant supervisory agencies and bodies broad administrative powers, including the
power to limit or restrict the Company from carrying on its investment management business
in the event that it fails to comply with such laws and regulations. In such event, the
possible sanctions which may be imposed include the suspension of individual employees,
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91249
limitations on the Company's engaging in the investment management business for specified
periods of time, the revocation of the Advisers' registrations as investment advisers or other
censures and fines.
The Company's officers, directors, and employees may, from time to time, own
securities which are also held by one or more of the Funds. The Company's internal policies
with respect to individual investments require prior clearance of all transactions in municipal
securities and securities of Exchange-Traded Funds, and reporting of all securities
transactions, and restrict certain transactions so as to avoid the possibility of conflicts of
interest.
Item 2. Properties
The Company, which is headquartered in Chicago, conducts its principal operations
through leased offices located there and in other United States cities. The Company leases
approximately 137,000 square feet of office space across the country. Management believes
that the Company's facilities are adequate to serve its currently anticipated business needs.
Item 3. Legal Proceedings
The Company is not subject to any material pending legal proceedings.
Item 4. Submission of Matters to a Vote of Security Holders
No matter was submitted to a vote of security holders during the quarter ended
December 31, 1992.
Executive Officers of the Registrant
The names, ages and positions of the executive officers of the Company are set forth
below. Executive officers of the Company serve at the discretion of the Board of Directors.
Unless otherwise indicated, each of the following executive officers has held his current
position with the Company or its predecessor for more than the past five years.
Name Age Principal Position
Richard J. Franke 61 Chairman, Chief Executive Officer and Director
Donald E. Sveen 60 President, Chief Operating Officer and Director
Anthony T. Dean 47 Executive Vice President and Director
Timothy R. Schwertfeger 44 Executive Vice President and Director
John H. Noonan 51 Vice President, Municipal Securities
Robert B. Kuppenheimer 47 Vice President, National Sales Manager
James J. Wesolowski 42 Vice President, Secretary and General Counsel
Paul C. Williams 47 Vice President, Corporate Planning and Research
O. Walter Renfftlen 53 Vice President and Controller
H. William Stabenow 58 Vice President and Treasurer
931249 Page 14
All executive officers of the Company are elected for a one-year term. There are no
family relationships between any of the Registrant's executive officers and directors, and
there are no arrangements or understandings between any of these executive officers and any
other person pursuant to which the executive officer was selected as an officer.
Mr. Franke has been Chairman, Chief Executive Officer and Director of the
Company since inception. He has been Chairman since 1988, Chief Executive Officer since
1974, and a Director since 1969, of Nuveen & Co. Mr. Franke joined Nuveen & Co. in
1957. He was named Executive Vice President and elected to Nuveen & Co.'s Board of
Directors in 1969, and became President and Chief Executive Officer in 1974. He has been
Chairman and Chief Executive Officer since 1988, and Director since inception, of Nuveen
Advisory and each of the Nuveen Funds, and has served as Chairman, Chief Executive
Officer and Director of Nuveen Institutional Advisory Corp. since inception. Mr. Franke is
a trustee of the University of Chicago, and serves on the board of the Yale Corporation. He
is a Certified Financial Planner.
Mr. Sveen has been President, Chief Operating Officer and Director of the Company
since inception. He has been President since 1989, and Director and Chief Operating Officer
since 1974, of Nuveen & Co. Mr. Sveen joined Nuveen & Co. in 1969 and was named
Executive Vice President in 1974. He has been a Director since inception, and President and
Chief Operating Officer since 1988, of Nuveen Advisory Corp and each of the Nuveen
Funds and has served as Director, President and Chief Operating Office of Nuveen
Institutional Advisory Corp. since inception. Mr. Sveen serves on the board of the Hinsdale
Bank for Savings. He is a Chartered Financial Analyst and a Certified Financial Planner.
Mr. Dean has been Executive Vice President and Director of the Company since
inception and has been Executive Vice President and Director of Nuveen & Co. since 1989.
Mr. Dean joined Nuveen & Co. in 1976, and was promoted to Vice President in 1980. He
was appointed Vice President - Administration and Treasurer of Nuveen & Co. in 1986 and
Manager of Nuveen & Co.'s Investment Products Sales and Customer Services Departments
in 1987. He has served as a Director of Nuveen Advisory and Nuveen Institutional Advisory
since 1992.
Mr. Schwertfeger has been Executive Vice President and Director of the Company
since inception and has been Executive Vice President and Director of Nuveen & Co. since
1989. Mr. Schwertfeger joined Nuveen & Co. in 1977, and was promoted to Vice President
in 1980. He was appointed Vice President and Manager, Unit Investment Trust Marketing
and Sales Department in 1986 and, since 1987, he has been responsible for the management
of the Corporate Marketing Department. He has served as a Director of Nuveen Advisory
and Nuveen Institutional Advisory since 1992.
Mr. Kuppenheimer has been Vice President of the Company since December 1992.
He has been Vice President of Nuveen & Co. since 1979 and has been National Sales
Manager since 1986. Mr. Kuppenheimer joined Nuveen & Co. in 1976 as an Assistant Vice
President and Manager of Insurance Industry Products.
Mr. Noonan has been Vice President of the Company since inception and has been
Vice President of Nuveen & Co. and Manager of its Municipal Securities Department since
931249 Page 15
he joined the firm in 1981. He has been a Director of Nuveen Institutional Advisory and
Nuveen•D&P since their inception.
Mr. Wesolowski has been Vice President, General Counsel and Secretary of the
Company since inception. He joined Nuveen & Co. in 1980 as Associate Counsel, was
promoted to Vice President in 1986, and to General Counsel and Secretary in 1987. Mr.
Wesolowski has served as Vice President, General Counsel and Secretary of Nuveen
Advisory since 1988, and of Nuveen Institutional Advisory since inception, and as Vice
President and Secretary of each of the Nuveen Funds since 1988. He is also a Director of
Nuveen•D&P.
Mr. Williams has been Vice President of the Company since inception. He joined
Nuveen & Co. in 1971 and was promoted to Vice President in 1978. He managed the
General Municipal Financial Group in the Municipal Securities Department from 1983 to
1990 and chaired Nuveen & Co.'s New Product Committee from 1987 to 1992. Mr.
Williams has been responsible for Corporate Planning and Research since 1991.
Mr. Renfftlen has been Vice President and Controller the Company since inception,
and of Nuveen & Co. since he joined the firm in 1975. He has also served as Vice President
and Controller of Nuveen Advisory, each of the Nuveen Funds, and Nuveen Institutional
Advisory since their inception. Mr. Renfftlen is a Certified Public Accountant.
Mr. Stabenow has been Vice President and Treasurer of the Company since inception.
He has served as Vice President of Nuveen & Co. since he joined the firm in 1977, National
Operations Manager since 1984, and Treasurer since 1988. Mr. Stabenow has also served as
Vice President and Treasurer of Nuveen Advisory and each of the Nuveen Funds since 1988,
and of Nuveen Institutional Advisory since 1992.
Part II
Item 5. Market for Registrant's Common Equity and Related Stockholder Matters
Information required by this item is contained in footnote 12 on page 29 of the
Registrant's 1992 Annual Report to Shareholders (the "1992 Annual Report") and is
incorporated herein by reference.
Item 6. Selected Financial Data
The "Five Year Financial Summary" section on page 31 of the 1992 Annual Report is
incorporated herein by reference.
931249 Page 16
Item 7. Management's Discussion and Analysis of Financial Condition and Results of
Operations
The "Management's Discussion and Analysis of Financial Condition and Results of
Operations" section on pages 17 through 19 of the 1992 Annual Report is incorporated herein
by reference.
Item S. Financial Statements and Supplementary Data
The financial statements and supplementary data on pages 20 through 30 of the 1992
Annual Report are incorporated herein by reference.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial
Disclosure
None.
PART III
Item 10. Directors and Executive Officers of the Registrant
The "Nominees for Directors" subsection and the "Nominees for Class B Directors"
subsection in the "Election of Directors" section on pages 5 through 7 of the Registrant's
Proxy Statement relating to the annual meeting of shareholders to be held May 19, 1993 (the
"1993 Proxy Statement"), and the "Compliance with Section 16(a) of the Securities Exchange
Act of 1934" subsection of the "Beneficial Ownership of Common Stock" section on page 4
of the 1993 Proxy Statement, are incorporated herein by reference. Information regarding
the Registrant's executive officers is included in Part I of this report.
Item 11. Executive Compensation
The "Executive Compensation" section on pages 9 through 14 (except for the "Report
of the Compensation Committee" subsection on pages 11 and 12), and the "Compensation of
Directors" subsection in the "Election of Directors" section on page 8, of the 1993 Proxy
Statement are incorporated herein by reference.
Item 12. Security Ownership of Certain Beneficial Owners and Management
The "Beneficial Ownership of Common Stock" section on pages 2 through 4 of the
1993 Proxy Statement is incorporated herein by reference.
Item 13. Certain Relationships and Related Transactions
None.
9+a 1249 Page 17
PART IV
Item 14. Exhibits, Financial Statement Schedules, and Reports on Form 8-K
(a) Filed documents. The following documents are filed as part of this report:
Page
1. Financial Statements: Number
Consolidated Balance Sheets - December 31, 1992 and 1991
Consolidated Statements of Income - Years ended
December 31, 1992, 1991 and 1990
Consolidated Statement of Changes in Stockholders' Equity -
December 31, 1992, 1991 and 1990
Consolidated Statements of Cash Flows - Years ended
December 31, 1992, 1991 and 1990
Notes to Consolidated Financial Statements
* Incorporated by reference to the 1992 Annual Report, which,
except as specifically incorporated by reference in this Form 10-K,
shall not be deemed to be filed with the Commission.
2. Financial Statement Schedules:
Independent Auditors' Report on Financial Statement Schedules 22
I Marketable Securities 23
IX Short-term Borrowing 25
All other schedules are omitted because they are not required
or not applicable or the information is otherwise shown in the
financial statements or notes thereto.
331243 Page 18
3. Exhibits:
See Exhibit Index on pages E-1 through E-3 hereof.
The following management contracts and compensatory plans and
arrangements are filed as Exhibits 10.1 through 10.7 to this Form 10-K or are
incorporated by reference:
Nuveen 1992 Special Incentive Plan
Form of Employment Agreement with Executive
Officers
Annual Cash Bonus Plan
Profit Sharing Plan
Retirement Plan
Excess Benefit Retirement Plan
Deferred Bonus Plan
(b) Reports on Form 8-K.
None.
Page 1^
931249
SIGNATURES
Pursuant to the requirements of the Section 13 or 15(d) of Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized, on March 30, 1993.
THE JOHN NUVEEN COMPANY
By /s/ James J. Wesolowski
James J. Wesolowski
Vice President, General Counsel
and Secretary
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been
signed below by the following persons on behalf of the Registrant and in the capacities indicated on
March 30, 1993.
Signature Title
* Chairman, Chief Executive Officer and
Richard J. Franke Director (Principal Executive Officer)
* President, Chief Operating Officer
Donald E. Sveen and Director
* Executive Vice President and Director
Anthony T. Dean
* Executive Vice President and Director
Timothy R. Schwertfeger
* Director
Douglas W. Leatherdale
* Director
Patrick A. Thiele
Page 20
931249
Signature Title
* Director
William J. Hay
* Director
W. John Driscoll
* Director
Duane R. Kullberg
* Director
Willard L. Boyd
* Vice President and Treasurer
H. William Stabenow (Principal Financial Officer)
* Vice President and Controller
O. Walter Renfftlen (Principal Accounting Officer)
*By /s/ James J.Wesolowski
James J.Wesolowski
As Attorney-in-Fact for each
of the persons indicated
Page 21
91249
Peat Marwick
Certified Public Accountants
Independent Auditors' Report
The Board of Directors and Stockholders
The John Nuveen Company:
Under date of January 29, 1993, we reported on the consolidated balance sheets of The John
Nuveen Company and subsidiaries as of December 31, 1992 and 1991, and the related
consolidated statements of income, changes in stockholders' equity, and cash flows for each of the
years in the three-year period ended December 31, 1992, as contained in the 1992 annual report to
stockholders. These consolidated financial statements and our report thereon are incorporated by
reference in the annual report on Form 10-K for the year 1992. In connection with our audits of
the aforementioned consolidated financial statements, we also have audited the related financial
statement schedules in the 10-K. These financial statement schedules are the responsibility of the
Company's management. Our responsibility is to express an opinion on these financial statement
schedules based on our audits.
In our opinion, such financial statement schedules, when considered in relation to the basic
consolidated financial statements taken as a whole, present fairly, in all material respects, the
information set forth thereon.
,C.P,rrG ,ear
Chicago, Illinois
January 29, 1993
Member Firmol
ar a§a Klynveld Peat Marwick Goerdeler Page 22
931249
The John Nuveen Company
Schedule I
Marketable Securities
December 31, 1992
(in thousands)
Market Amount per
Name of issuer and title of each issue Par Value Cost Value Balance Sheet
Temporary investments arising
from remarketing obligations:
Illinois Health (Franciscan) $ 20,385 $ 20,385 5 20,385 $ 20,385
Newport Beach (Hoag Memorial) 18,330 18,330 18,330 18,330
Grand Forks (United Hospital) 15,200 15,200 15,200 15,200
Illinois Health (Central DuPage) 14,000 14,000 14,000 14,000
Ohio State University 868 12,650 12,650 12,650 12,650
Washington.Hlth. (Hutchinson 91A) 11,545 11,545 11,545 11,545
Indiana Health (Cap. Access 91) 8,600 8,600 8,600 8,600
Illinois:Health (Healthcorp) (1) 5,005 5,005 5,005 5,005
Blytheville (DR Terra Chemical 83 5,000 5,000 5,000 5,000
Westmorland County Handy/Harman 83 3,600 3,600 3,600 3,600
Flint Hospital (Hurley Medical Center) 3,550 3,550 3,550 3,550
Des Moines Iowa Methodist 85A 3,005 3,005 3,005 3,005
IDEA (Council for Jewish) 2,960 2,960 2,960 2,960
Illinois Health (Evangelical) (1) 2,495 2,495 2,495 2,495
Sitka School Improvement 2,450 2,450 2,450 2,450
Illinois Health (Springfield 85C) 2,330 2,330 2,330 2,330
Purdue University 2,150 2,150 2,150 2,150
IDEA (Uhlich Childrens Project) 1,800 1,800 1,800 1,800
Illinois Health (LaGrange Memorial) 1,800 1,800 1,800 1,800
Pierce County EDC IDR (Pickering) 1,700 1,700 1,700 1,700
Ohio State University 858 1,400 1,400 1,400 1,400
Indiana Hospital Equipment 85A 1,200 1,200 1,200 1,200
Adams County IDR (Yellow Freight) 1,000 1,000 1,000 1,000
Wisconsin Health (Lutheran Fund) 1,000 1,000 1,000 1,000
All other (1) 5,130 5,130 5,130 5,130
Total temporary investments S 148,285 S 148,285 $ 148,285 $ 148,285
Tax-exempt unit trusts:
Primary:
National Insured 247 S 10,681 $ 10,421 $ 10,432 S 10,432
National 517 4,774 4,662 4,690 4,690
Short Intermediate Insured 20 2,425 2,414 2,414 2,414
Maryland 280 2,647 2,592 2,594 2,594
New York Insured 197 5,728 5,612 5,646 5,646
New Jersey Insured 160 3,345 3,284 3,295 3,295
Colorado Insured 45 3,372 3,277 3,270 3,270
Tennessee Insured 17 3,228 3,114 3,120 3,120
Ohio Insured 101 2,689 2,606 2,605 2,605
Massachusetts Insured 98 2,428 2,366 2,385 2,385
Florida Insured 171 2,316 2,219 2,226 2,226
Arizona Insured 25 2,150 2,074 2,090 2,090
Other (1) 4,300 4,177 4,197 4,197
50,084 48,817 48,964 48,964
Secondary:
National (1) 9,179 4,931 4,514 4,514
Other (1) 7,123 5,901 5,753 5,753
16,303 10,832 10,267 10,267
Total tax-exempt unit trusts $ 66,386 S 59,650 $ 59,231 S 59,231
Page 23
931249
The John Nuveen Company
Schedule I
Marketable Securities (continued)
December 31, 1992
(in thousands)
Market Amount per
Name of issuer and title of each Issue Par Value Cost Value Balance Sheet
Tax-exempt notes and bonds:
Iowa Finance Auth (Lutheran Hosp) S 2,460 $ 2,429 $ 2,438 $ 2,438
Puerto Rico Commonwealth (1) 2,000 2,074 2,079 2,079
Other (1) 5,030 4,752 4,761 4,761
Total tax-exempt notes and bonds $ 9,490 $ 9,255 $ 9,278 $ 9,278
U.S. government securities (1) S 8,610 $ 9,224 $ 9,452 $ 9,452
(1) Represents a group of issues, no one individually exceeding 2%-of total assets.
Page 24
931249
THE JOHN NUVEEN COMPANY
SCHEDULE IX - SHORT-TERM BORROWING
Years Ended December 31, 1992, 1991 and 1990
(In thousands)
Average
Weighted Maximum amount Weighted
average amount outstanding average
Balance at interest rate outstanding during the interest rate
end of year at end of year during the yearYear (1) during the year
1992
Short-term bank
borrowings $20,000 5.75% 139,000 12,498 4.10%
1991
Short-term bank
borrowings $22,000 5.44% 54,000 1,567 6.11%
1990
Short-term bank
borrowings $13,700 11.00% 57,000 1,415 8.07%
(1) Based on weighted average daily amounts outstanding.
Page 25
931243
EXHIBIT INDEX
to
ANNUAL REPORT ON FORM 10-K
for the
FISCAL YEAR ENDED DECEMBER 31, 1992
Copies of the documents listed below which are identified with an asterisk (*) have heretofore been
filed with the Commission as exhibits to registration statements or reports filed with the Commission
and are incorporated herein by reference and made a part hereof; the exhibit number and location of
each document so filed and incorporated herein by reference are set forth opposite each such
exhibit. Exhibits not so identified are filed herewith.
Page No. of
Exhibit in
Sequential
Exhibit Exhibit No. Numbering
Designation Exhibit and Location System
* 3.1 Restated Certificate of Exhibit 3.1 to
Incorporation of The John Registration Statement
Nuveen Company on Form S-1 filed on
April 2, 1992, File No.
33-46922 (the "S-1
Registration Statement")
* 3.2 Amended and Restated By- Exhibit 3.2 to Pre-
Laws of The John Nuveen effective Amendment
Company No. 1 to Registration
Statement on Form S-1
filed on May 7, 1992
("Pre-effective
Amendment No. 1")
10.1 Nuveen 1992 Special --
Incentive Plan
*10.2 Form of Employment Exhibit 10.2 to Pre-
Agreements with certain effective Amendment
executive officers No. 1
10.3 Annual Cash Bonus Plan --
*10.4 Profit Sharing Plan Exhibit 10.4 to the S-1
Registration Statement
*10.5 Retirement Plan Exhibit 10.5 to the S-1
Registration Statement
*10.6 Excess Benefit Retirement Exhibit 10.6 to the S-1
Plan Registration Statement
E-1
931249
Page No. of
Exhibit in
Sequential
Exhibit Exhibit No. Numbering
Designation Exhibit and Location System
*10.7 Deferred Bonus Plan Exhibit 10.7 to the S-1
Registration Statement
*10.8(a) Lease dated August 10, 1984 Exhibit 10.8 to the S-1
between 333 Wacker Drive Registration Statement
Venture and John Nuveen &
Co. Incorporated, as
amended
10.8(b) Amendment dated January 1, --
1993 to lease between 333
Wacker Drive Venture and
John Nuveen & Co.,
Incorporated
**10.9 Investment Management Exhibit 10.9 to Pre-
Agreements between Nuveen effective Amendment
Advisory Corp. and each No. 1
Nuveen Fund
**10.10 Investment Management Exhibit 10.10 to Pre-
Agreements between Nuveen effective Amendment
Institutional Advisory Corp. No. 1
and each Nuveen Select Tax-
Free Income Portfolio
*10.11 Joint Venture Agreement, Exhibit 10.11 to S-1
dated May 9, 1990, between Registration Statement
Nuveen Institutional
Advisory Corp. and Duff&
Phelps Investment
Management Co.
*10.12 Tax Sharing Agreement Exhibit 10.13 to S-1
between The St. Paul Registration Statement
Companies, Inc. and John
Nuveen & Co. Incorporated
10.13 Registration Rights --
Agreement between The John
Nuveen Company and The
St. Paul Companies, Inc.
E-2
931249
Page No. of
Exhibit in
Sequential
Exhibit Exhibit No. Numbering
Designation Exhibit and Location System
10.14 Indemnity Agreement --
between The St. Paul
Companies, Inc. and The
John Nuveen Company
13 Annual Report to --
Shareholders for the fiscal
year ended December 31,
1992
*22 List of Subsidiaries of The Exhibit 22 to the S-1
John Nuveen Company. Registration Statement
24 Consent of Independent --
Auditor
25.1 Powers of Attorney --
25.2 Certified Copy of Resolution --
of Board of Directors
Authorizing Signatures
* Previously filed; incorporated herein by reference.
** Previously filed, other than certain Investment Management Agreements, amendments and
renewals not previously filed, which are filed herewith.
E-3
931249
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